Hong Kong Relief Measures Getting Through COVID …...Rental Waiver •Fuel subsidy for taxi, public...

(updated as of 14 April 2020)

Hong Kong Relief MeasuresGetting Through COVID-19 Outbreak

2COVID-19 Measures© 2020. For information, contact Deloitte China.

Tax Measures


Tax Measures

Deferral of Tax Filings Extension of Due Date

• 2019/20 Profits tax returns

Returns will be issued on 4 or 5 May 2020, around a month later than normal.

For “N” code companies (i.e. those whose accounting year end dates falls within 1 April to 30 November 2019), filings are due by 30 June 2020 (around a month later than normal).

• 2019/20 Individual tax returns

Returns will be issued on 1 June 2020, around one month later than usual.

Filings are due by 30 June 2020. Taxpayers who elect for electronic filing via eTAX receive an automatic one month extension.

• Country-by-country reporting (CbCR) notifications

Originally, a Hong Kong entity of a reportable group is required to file a notification in relation to CbCR for an accounting period within 3 months after the end of the relevant accounting period.

Now, CbCR notifications can be filed via the CbCR portal on or before 1 June for all entities with accounting periods ending between 31 December 2019 and 29 February 2020.

• Due dates for tax payments, lodgement of objections and holdover applications, and submission of tax returns and information that fall between 23 March and 2 May are automatically extended to 4 May 4 2020.

• Tax payment deadlines for salaries tax, personal assessment and profits tax demand notes for the year of assessment 2018/19 which fall between April to June of this year are automatically extended by three months

Waiver of Surcharge

• Waive surcharge on tax outstanding for taxpayers who applied and obtained approval for payment of tax by instalments for year of assessment 2018/19.

• The waiver covers profits tax, salaries tax, and personal assessment

Reduction of Tax

Reducing profits tax, salaries tax and tax under personal assessment for the year of assessment 2019/20 by 100 per cent, subject to a ceiling of $20,000


Tax Measures (Cont’d)

Waiver of Rates

• Waiving the business registration fees for 2020-21

• Waiving the registration fees for all annual returns charged by the Companies Registry for two years

• Waiving rates for 2020-21

• For non-domestic property: waiver is subject to a ceiling of $5,000 per quarter in the first two quarters and a ceiling of $1,500 per quarter in the remaining two quarters for each rateable non-domestic property

• For residential property: waiver is subject to a ceiling of $1,500 per quarter for each rateable property

Waiver of Fees


Financial Measures


Financial Measures under the Anti-epidemic Fund (1st round on 21 February 2020)

Retail Sector Subsidy Scheme

Food Licence Holders Subsidy Scheme

• A one-off subsidy of HK$80,000 for each eligible retail store

• Maximum HK$3 million for retail groups or chain stores under the same business registration

• A one-off subsidy of HK$200,000 / HK$80,000 will be provided to eligible licence holders of the premises in operation (depends on licence type)

Rental Waiver

• Fuel subsidy for taxi, public light buses, franchised buses, local ferries and tramways

• A one-off subsidy of HK$20,000 for each licensed non-franchised bus

• A one-off subsidy of HK$10,000 for each licensed school private light bus, hire car and goods vehicle

Subsidy for the Transport Sector

Convention and Exhibition Industry Subsidy Scheme

• To subsidise 50% of participation fee per participation in HKTDC’s exhibitions, subject to a cap of $10,000, for 12 months

• To subsidise 100% venue rental for exhibitions and international conventions/conferences at HKCEC and AWE for one year

Six-month rental waiver to tenants and start-ups at the Hong Kong Science Park, industrial estates and Cyberport

Subsidies for Live Marine Fish Wholesale Traders and Fishing Vessels with Mainland Deckhands

Subsidies to eligible owners of fishing vessels and fish collector vessels with Mainland deckhands:

• HK$200,000 for each vessel of 25 meters or above in length; or

• HK$80,000 for each vessel of less than 25 meters in length.

Arts and Culture Sector Subsidy Scheme

Subsidies to arts organisations and freelance arts workers affected by closure of arts, cultural and exhibition facilities and cancellation of performances ranging from HK$3,000 to HK$80,000

Licensed Guesthouses Subsidy Scheme

• A one-off subsidy of HK$50,000 for guesthouse with one to five licensed guestrooms

• A One-off subsidy of HK$80,000 for those with six or more licensed guestrooms


Financial Measures under the Anti-epidemic Fund (1st round on 21 February 2020) (Cont’d)

Travel Agents Subsidy Scheme

Support to Training Bodies

A one-off subsidy of HK$80,000 for each eligible travel agent

A special grant, set at 30% of the funding allocated to individual training bodies for organising retraining courses, to appointed training bodies of the Employees Retraining Board throughout the epidemic period but no fewer than four months from February to May 2020

Licensed Hawkers Subsidy Scheme

A one-off subsidy of HK$5,000 for eligible licence holders of Fixed-pitch Hawker Licence or Itinerant Hawker Licence


Financial Measures under the Anti-epidemic Fund (2nd round on 8 April 2020 and supplemented on 14 April 2020)

Wage Subsidy

• A wage subsidy calculated based on 50% of the monthly salary, which is capped at HK$18,000, for a period of six months

• All employers who have been making Mandatory Provident Fund (MPF) contributions for employees are eligible, except those on the exclusion list

• Employers have to undertake that they cannot implement redundancy

• 100% of the subsidy amount has to be used for employee wages

• To be disbursed to employers in two payments, with the first not later than June 2020

• To grant a one-off subsidy of HK$7,500 to self-employed persons who made MPF contributions Relief Grant to Registered Coach

A one-off relief grant of K$7,500 to each registered coach with proven coaching records

Relief Grant to Instructor of Interests Classes

A one-off relief grant of HK$7,500 to each instructor of interests classes for organisations subvented by the Social Welfare Department

Relief Grant to Local Primary Producer

A one-off relief grant of HK$10,000 to each local primary producer

Relief Grant to Private Refuse Collector

A one-off relief grant of HK$8,000 to each private refuse collector

Measures to Encourage New Skills and Technology

• To subsidise the public and private sectors 50% of project costs for projects deploying 5G technologies, subject to a cap of HK$500,000 for each project

• Training subsidies of HK$50,000 to each consulting firm in the construction sector

• To provide matching grants for skills upgrading training programmes for staff in the public and private sectors

• To provide subsidy to the training institutions entrusted by the Employees Retraining Board (ERB) to maintain minimum operation

Relief Grant to Tutorial Schools

• A one-off relief grant of HK$40,000 to tutorial schools

Relief Grant to Service Providers and Suppliers for Schools

• Catering outlets: HK$80,000

• Lunchbox providers: HK$10,000 per school

• School bus drivers, school private light bus drivers and nannies: HK$10,000 per driver/per school bus for nannies

• Instructors, coaches, trainers and operators of interests class engaged by schools: HK$7,500 for each eligible individual


Financial Measures under the Anti-epidemic Fund (2nd round on 8 April 2020 and supplemented on 14 April 2020) (Cont’d)

Subsidies for Passenger Transport SectorSubsidies for Tourism Industry

• To provide each of the licensed travel agents with cash subsidy ranging from HK$20,000 to HK$200,000

• To provide each travel agents’ staff and active freelance tourist guides and tour escorts holding a valid pass a monthly subsidy of HK$5,000 for six months

• To provide each licensed hotel with cash subsidy of HK$300,000/HK$400,000

• To provide each coach driver who mainly provides transport services for tourists with a one-off subsidy of HK$10,000

• To waive the monthly fixed rent and management fees of the operator of Kai Tak Cruise Terminal for six months

• A subsidy to cruise lines by offering refund of berth deposits for cancelled ship calls during the suspension of immigration service

Subsidies for Creative Industries

• Taxi and red minibus (RMB) drivers

• A monthly subsidy of HK$6,000 for a period of 6 months to each eligible active taxi and RMB driver

• A one-off subsidy of HK$7,500 for taxi and RMB drivers who cannot meet all the eligibility requirements of an active driver but can fulfill certain conditions

• A one-off subsidy of HK$30,000 for the registered owner of each taxi and RMB

• A one-off subsidy of HK$30,000 to the registered owner of each non-franchised bus, school private light bus and hire car

• Reimburse 100% of the actual regular repair and maintenance costs and insurance premium for 6 months for the five franchised bus companies, nine franchised/licensed ferry operators and Hong Kong Tramways Limited

• A subsidy of HK$100,000 per screen to each cinema with commercial operation in March

• A subsidy of HK$25 million for upkeeping PMQ’s operation and waiver of its tenants’ rental

• To meet all the participation fees of eligible participants in the next Hong Kong Book Fair

• Maximum amount for each participant is HK$100,000

Relief Grant to Brokers and SFC Licensed Individuals

• A subsidy of K$50,000 to each broker ranked 15th onwards by market turnover

• A subsidy of HK$2,000 to each SFC licensed individuals

Subsidy to Licensed Individuals of Estate Agency Sector

• A one-off cash subsidy to licensed individuals of the estate agency sector

• Amount equal to 24-month licence fee of the relevant licences



Subsidy for Non-Profit-Making Organisations

Subsidies for Catering Sector

• A one-off subsidy of HK$3 million to the non-profit-making organisations running the projects under the Revitalising Historic Buildings Through Partnership Scheme, PMQ and the Fly the Flyover Operation

• A one-off subsidy ranging from HK$250,000 to HK$2.2 million to catering outlets based on the size of their premises

• A further one-off subsidy of HK$50,000 to each eligible catering outlet directed by the Government to close whole of its licensed premises

• A one-off subsidy of HK$50,000 to tenants of cooked food/light refreshment stalls at public markets

Subsidies for Aviation Sector

• A one-off subsidy of HK$1 million per large aircraft registered in Hong Kong and HK$200,000 per small aircraft registered in Hong Kong

• A one-off subsidy of up to HK$3 million (with 100 employees or above) / HK$1 million (with less than 100 employees) to each aviation support services and cargo facilities operator

Subsidies for Construction Sector

• A subsidy of HK$7,500 to each eligible Registered Construction Worker

• A subsidy of HK$20,000 to each eligible contractor, specialist contractor and supplier, and company member of major contraction-related trade associations

• A subsidy of HK$10,000 to each eligible Registered Minor Works Contractor, Registered Electrical Contractor, Registered Gas Contractor, Registered Lift/Escalator Contractor, Registered Contractor under Builders’ Lifts and Tower Working Platforms (Safety) Ordinance, Registered Fire Service Installation Contractor and each eligible supplier of construction-related machineries and equipment rental



Subsidies for Sectors Which Are Completely or Partly Closed Due to Measures for Safeguarding Public Health Imposed by the Government

• Operator of amusement game centre: HK$100,000

• Holder of commercial bathhouse licence: HK$100,000

• Operator of fitness centre: HK$100,000

• Operator or place of amusement: HK$100,000

• Holder of a Place of Public Entertainment Licence (PPEL) (except cinema): HK$100,000

• Holder of a Temporary PPEL: HK$20,000

• Holder of Mahjong/Tin Kau Licence: HK$100,00

• Operator of club-house: HK$100,000

• Beauty parlour operator: HK$30,000 to HK$100,000 depending on the size of the premises, subject to a cap of HK$3 million for each beauty parlour chain

• Operator of massage establishment: HK$30,000 to HK$100,000 depending on the size of the premises, subject to a cap of HK$3 million for each massage establishment chain

• Non-governmental operator of sports and recreational facilities on Government sites: HK$100,000 for facilities provided on each Government site

Enhancement of SME Financing Guarantee Scheme

• Enhancements to the 80%, 90% and Special 100% Guarantee Products under the SME Financing Guarantee Scheme

Rental and Fee Concessions for Government Premises

• To increase rental concessions for eligible businesses/organisations operating in government premises from 50% to 75% from April to September 2020

• Businesses which have completely ceased operation will receive a full rental waiver.

• To increase the rental or fee concessions from 50% to 75% in respect of eligible short-term tenancies and waivers administered by the Lands Department from April to September 2020

• To expand the scope of the above rental concessions and waiver fee concessions to more businesses/organisations not covered by previous rounds of helping measures

• Short-term tenancies and waiver holders which are ordered to close or have chosen to close due to Government’s closure orders or other restrictions for safeguarding public health may apply for full concession

• To extend the subsidy to each eligible non-domestic household accounts for a total of 8 months to cover 75 per cent of their monthly billed electricity charges, subject to a monthly cap of $5,000 per account.

• To extend the 75% waiver of water and sewage charges payable by non-domestic accounts for another four months from August to November 2020 (i.e. a total of 12 months), subject to a monthly cap of HK$20,000 and HK$12,500 respectively per account

• To provide a 75 per cent reduction of hire charges for civic centres under the Leisure and Cultural Services Department from April to September 2020

• To waive the registration/enrolment fees for healthcare professionals for three years starting from July 2020


Other Measures


Other Measures under the Anti-epidemic Fund (1st round on 21 February 2020)

• Enhancing support to the Hospital Authority in combatting the epidemic

• Support local mask production

• Global procurement of personal protective equipment

• Support property management sector in anti-epidemic efforts

• Technology applications to enable reusability of masks

• Support construction sector in anti-epidemic efforts

• Support cleansing and security staff engaged by Government and Hong Kong Housing Authority service contractors in anti-epidemic efforts

• Installation of emergency alert system

• Home Quarantine Support

• Ex-gratia payment to households of the two public housing estates designated as quarantine centres

• Special Allowance for Eligible Working Family Allowance and Student Financial Assistance Households

• Additional student study grant for 2019-20 school year

• Support to child care centres


Other Measures under the Anti-epidemic Fund (2nd round on 8 April 2020 and supplemented on 14 April 2020)

• To temporarily relax the asset limits of Comprehensive Social Security Assistance Scheme for six months

• To create around 30 000 time-limited jobs (up to 12 months) in the public and private sectors in the coming two years

• To recruit about 10,000 civil servants and 5,000 young interns in the coming year

• To increase 10,000 training places in the ERB and increase the maximum monthly allowance for all qualified students to HK$5,800

• Optimize the employment plan of the Labour Department and increase the upper limit of on-the-job training allowance

• To assist some SME law firms/ barristers’ chambers to procure / upgrade their information technology system and arrange relevant LAWTECH training for their staff to support the development of remote hearings

• To provide Online Dispute Resolution services for disputes related to or arising from COVID-19

• To implement a Distance Business Programme under the Innovation and Technology Bureau to support enterprises to continue business with technology adoption and related training

• MTRCL to provide a 20% fare reduction for a time-limited period of six months between 1 July 2020 and 1 January 2021

• To temporarily relax the monthly public transport expense threshold of the PTFSS from HK$400 to HK$200 for a time-limited period of six months between July 2020 and December 2020

• To grant one-off interest-free deferral of loan repayment for two years to self-financing post-secondary institutions

• To disburse HK$10,000 to Hong Kong permanent residents aged 18 or above

• To provide an extra allowance to eligible social security recipients, equal to one month of the standard rate Comprehensive Social Security Assistance payments, Old Age Allowance, Old Age Living Allowance or Disability Allowance. Similar arrangements will apply to recipients of the Work Incentive Transport Subsidy.

• To pay one month's rent for lower income tenants living in public rental units of the Hong Kong Housing Authority (HA) and the Hong Kong Housing Society

• A one-off special allowance is paid to eligible households and student-aid households. Workers and tenants can receive a two-month allowance, while student-aid households can get a lump sum of HK$4,640

• To provide a monthly allowance of HK$1,000 per month for cleaning workers, toilet clerks and security personnel of government and HA service contractors for a period of not less than 4 months


Other Measures through Government Facilitation under the Anti-epidemic Fund (2nd round on 8 April 2020 and supplemented on 14 April 2020)

Reference: 1. Inland Revenue Department’s website https://www.ird.gov.hk/eng/new/index.htm2. The government’s website on Anti-epidemic Fund https://www.coronavirus.gov.hk/eng/anti-epidemic-fund.html

• Airport Authority Hong Kong will budget HK$2,000 million to provide further relief measures for the aviation sector

• The Hong Kong Monetary Authority has worked with the banking industry to implement a number of measures in addressing cash-flow pressure of the clients (especially the SMEs)

• All major insurance companies have proactively offered grace period of premium payment up to 30 to 180 days for holders of individual life, critical illness and medical policies

• Flexible Handling of Government Works and Non-works Contracts and Other Development Projects

https://www.ird.gov.hk/eng/new/index.htm

https://www.coronavirus.gov.hk/eng/anti-epidemic-fund.html

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Hong Kong Relief Measures Getting Through COVID …...Rental Waiver •Fuel subsidy for taxi, public...

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