Tricor Proposes to Include COVID Relief and Other Longer-term Measures in 2022/23 Hong Kong Budget

HONG KONG, Feb. 17, 2022 /PRNewswire/ -- As Asia's leading business expansion specialist, Tricor has been a trusted partner of companies, large and small, in Hong Kong. Tricor has also been actively contributing its professional knowledge and experience to help continuously improve the business environment and shape a better future for everyone.

In light of the challenging times resulting from the fifth wave of the pandemic, Tricor proposes several short- and long-term measures to be considered in the 2022/23 Hong Kong Budget as support programs during COVID and for facilitating the development of focus industries that will drive future growth. These proposed measures include:

1. Cushion the economic impact of COVID-19 pandemic

Group relief and carry-back of tax losses

• Introduce group relief and allow carry-back of tax losses. Cash is the oil that sustains businesses, particularly Small and Medium Enterprises (SMEs) amid the pandemic. We suggest that capital allowances and tax losses be carried back to three preceding years of assessment. However, the carry-back losses are capped at HK$500,000 for each year of assessment.
• Additionally, the Financial Secretary (FS) should introduce group relief which allows members of a group of companies to transfer certain agreed profits tax losses to other members of the group, for example, Company A can surrender a loss to Company B of the same group.

One-time enhanced deductions for donations

• Suggest giving donors a 200% tax deduction for approved donations made to approved charitable organizations. The current economic uncertainty suggests that a large swathe of HK's population may continue to need financial assistance.

2. Support workforce transformation

One-time enhanced deduction for retraining/reskilling local workforce

• Consider granting employers a 200% deduction on approved training for employees / new hires in sectors the HK Government wants to promote, for example, technology and finance-related Industries.
• Introduce age relief for individuals of the older generation by allowing a higher relief quantum for those aged 55 and above.
• Consider giving financial grants to employees to be re-trained to take up employment in promoted industries, for example, technology and finance-related Industries).

3. Enhance tax regime for specific sectors

• Introduce broader and clearer definition on tax incentives to promote economic integration between Hong Kong and the Greater Bay Area. The FS should clearly define which industry sectors (Technology/Financial Services) would qualify for tax incentives (double deduction for approved research and development, investment tax allowance) so as to attract the right investments and create career opportunities for Hong Kong graduates aspiring to build their careers in these sectors.
• Consider introducing incentives to encourage further growth in the Family Offices sector.

Tricor is committed to working with companies, the government, industry associations and other professional bodies closely, and walking together with the people of Hong Kong to navigate through opportunities and challenges.

About Tricor:

Founded in 2000, Tricor Services Limited has been the leading business expansion specialist in Asia. Our team of 600+ professionals serves over 10,000 clients across multiple industries, including more than 50% of listed companies and family offices, from Hong Kong and mainland China in full strength.

Tricor Services Limited's business expansion solutions include integrated business management advisory, corporate administration and secretarial services, trust and fiduciary services, and human resource consultation. Tricor Inside, our unique approach to business expansion, empowers companies to seamlessly maneuver from start-up to IPO and beyond.