This year’s tax sweeteners of the proposed budget sees a return of the Waiver of Business Registration Fees from 1 April 2019 to 31 March 2020.
The Financial Secretary proposed to waive business registration fees for one year, starting from 1 April 2019. The Government will introduce the relevant legislative amendment into the Legislative Council as soon as possible to effect the measure. Business registration certificates with the commencement date falling within the Waiver Period will be reduced by a sum of HKD2,000. Thus applies to new, as well as, existing companies that renew their business registration certificates. A refund of fees paid would apply to businesses holding a 3-year certificate and entities that cease business within the Waiver Period and hold a valid certificate.
Reducing profits tax and salaries tax for the year of assessment 2018/19
A one-off reduction of profits tax and salaries tax is proposed for the year of assessment 2018/19. Like the years before, the tax payable will be reduced by 75%, subject to a ceiling of HKD20,000 per case. For profits tax, the ceiling of the tax reduction is applied to each business. For salaries tax, the ceiling is applied to each individual taxpayer. The tax reduction is estimated to benefit 140,000 businesses and 1.91 million individual taxpayers.
Taxpayers should file their profits tax returns and tax returns for individuals for the year of assessment 2018/19, to be issued in coming April and May respectively, to have the reduction applied. The tax returns will be due within one month after the issue date. If an extension of the filing deadline is required, your tax representative can have your business included in the block extension scheme.
Encore assists with the preparation and filing of profits tax returns. For more information and filing extension, please contact us.