Maintaining Hong Kong as an attractive tax jurisdiction for business in Asia
Financial Secretary John Tsang delivered his second budget speech on 26 February 2014.
The revised forecast predicts a HK$12 billion surplus for the year 2013/14, well ahead of the forecast deficit of HK$4.9 billion. Land sales, stamp duty and profits tax remain the major sources of revenue.
A modest improvement in the economy is forecast with GDP growth of 3 to 4 percent for 2014.
The 2014 headline inflation rate is estimated at 4.6 percent.
The government has announced a wide range of proposal to promote the finance sector, including:-
Proposes to issue inflation-link bond worth up to HK$10 billion with maturity of three years.
Proposes to waive stamp duty for trading of all exchange trade funds.
The Financial Secretary remains the profits tax rates unchanged for 2014/15. However, tax concessions and one-off benefits would be continued in 2014/15, including:-
A reduction in salaries tax and tax under personal assessment for 2013/14 of 75 percent, subjects to ceiling of HK$10,000.
A reduction in profits tax for 2013/14 of 75 percent, subject to ceiling of HK$10,000.
An increase in maintaining dependent parent or grandparent allowance.
A waiver of rates for the first two quarters of 2014/15, subjects to a ceiling of HK$1,500 per quarter.
Capital expenditure for 2014/15 will be HK$86 billion, exceeding around HK$70 billion of last year, including:-
Assisting the Airport Authority Hong Kong to press ahead with planning for a three runway system.
As for railways, a total cost of more than HK$10 billion are under construction.
As for the management of municipal solid waste, the government will invest about HK$30 billion in waste recycling and treatment facilities.
Residential property prices have more than doubled since 2008, the government would keep on execute cooling measures to avoid property bubble, including:-
The 2014/15 land sales program includes 34 residential sites capable of providing 15,500 units.
To increase housing land supply with a view to achieve the target of providing 470,000 residential flats in the next 10 years.
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