Deloitte recommends full government waiver of provisional tax to support middle class

Financial news

Written by: Yue Yueting

2019-11-28 13:59

As of the end of September this year, Hong Kong had recorded a deficit of HK $ 95.4 billion in the first half of the financial year, a 27% decrease from the same period last year. The Deloitte Budget Team recommends that the government propose more tax measures in response to economic difficulties, especially to support the middle class.

Chen Jiahua, a Deloitte China tax partner, recommends that the government consider waiving all taxpayers' provisional taxes and provide tax-free economic assistance to eligible SMEs, especially the hotel and catering industry.

Call for rental deductions for individual taxpayers

Personally, the government should consider increasing the allowances for eligible individual taxpayers and introducing a deduction for rental expenses from homes, with a ceiling of 150,000 yuan per year.

Chen Jiahua also suggested that the government should provide more tax concessions to multinational companies and fund managers to attract multinational companies to set up regional headquarters or treasury centers in Hong Kong.

Many companies are hoping to enter the Mainland market through the Greater Bay Area. Chen Jiahua believes that for companies that send employees to work in the Greater Bay Area, the government can provide them with additional pre-tax deductions for transportation or other business-related expenses. Governments can also provide tax benefits (such as tax credits or refunds) to venture capital investments in eligible innovative industries.

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Deloitte Hong Kong Economy