2015/16 HK Budget: KPMG Survey Results

KPMG Survey Results Hong Kong Budget 2015/16

KPMG China

25 Feb 2015

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KPMG conducted a survey in December 2014 to obtain

feedback from senior business executives on their

expectations for the 2015-16 Hong Kong Budget. The survey,

which received feedback from 398 senior executives, identified

the respondents’ key priorities for the 2015-16 Budget and the

main challenges to doing business in Hong Kong.


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Key priorities for the 2015-16 budget

• Over 70% stated that the government’s

top priorities when preparing the 2015-16

Budget should be Hong Kong’s

competitiveness, or livelihood and

housing issues.

• Other key priorities include addressing

the disparity between rich and poor, and

the financial burden resulting from the

ageing population.


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Methods to tackle a potential structural deficit in Hong Kong

• 53% said that the government should focus on stimulating economic growth, with a view to increasing tax revenue.• Other methods include reducing government expenditure, adjusting the existing tax rates, setting up a ‘Future Fund’ and introducing new taxes.


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Challenges to doing business in Hong Kong

• 42% indicated that high operating costs

have the most negative impact on their

business in Hong Kong.

• Other challenges are related to the

external economic environment, the

availability of appropriate talent, and

infrastructure.


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Proposed amendments to Hong Kong’s taxation system

• In terms of the tax system, 69% either want tax incentives for group headquarters / service companies in Hong Kong or favourable tax rates for SMEs.

• Other proposed amendments include a super-deduction for R&D expenditure and group tax loss relief.


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Concerns about automatic exchange of tax

information

• 40% see the potential leakage of

confidential business information as the

top concern for automatic exchange of

tax information.

• Other concerns include additional

compliance costs, additional tax disputes,

and how the business relationship

between taxpayers and their business

counterparts will be affected.


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SUMMARY – KPMG Survey Results


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2015/16 HK Budget: KPMG Survey Results

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