HONG KONG and MACAU, Feb. 27, 2013 /PRNewswire/ -- ACCA (the Association of Chartered Certified Accountants) Hong Kong agrees with the 2013/14 Budget delivered by The Hon John Tsang, the Financial Secretary which adheres to the principle of fiscal prudence, addressing the issues related to economic development and employment through investment in areas including public health sector, education sector, financial services industry, and nurturing emerging industries; while long term and clear measures are needed in improving people's livelihood and building a business enabling environment.
As mentioned in the Budget, the intricate global economic environment will remain unstable in the year ahead. The Government is expected to help relieve the community's burden. Fergus Wong, ACCA Hong Kong Tax Sub-committee Co-Chairman said, "We welcome the Government's plan to spend HK$ 33 billion to introduce various one-off measures to help people to ride the challenging economic tide, including a waiver of rates (capped at HK$1,500 per quarter), salaries tax reduction (capped at HK$10,000), and an increase in the basic and additional child allowances to HK$70,000. In light of the challenges posed by an ageing population, ACCA Hong Kong recommends an annual tax deduction for private medical insurance premium to encourage more people to acquire medical insurance, hence help lowering the medical expenses of the Government."
"The Financial Secretary agreed that middle-class families should be given support; however, there are not enough measures addressing the needs of middle income group in the Budget. ACCA Hong Kong recommends that the income bands for the progressive tax rates under salaries tax be widened. To relieve the burden of the working couples, ACCA Hong Kong also recommends a deduction for the cost of employing domestic helpers. These measures will help ease the burden of the middle class," Fergus added.
In terms of the proposed measures and policies in enhancing a business enabling environment, Jeremy Ngai, ACCA Hong Kong Tax Sub-committee Co-Chairman said, "For the past years, ACCA Hong Kong has been recommending the Government to extend the profit tax exemption for offshore funds to include transactions in private companies which are incorporated or registered outside Hong Kong and do not hold any Hong Kong properties nor carry out any business in Hong Kong. This will allow private equity funds to enjoy the same tax exemption as offshore funds, promoting Hong Kong as a regional asset management hub. We are very pleased to see our recommendation has been adopted by the Government, and we look forward to the consultation on the amendments to relevant tax legislation and detailed proposals."
"We look forward to seeing more concrete measures to be implemented by the new Government for economic development. We continue to recommend a concessionary tax rate (e.g. half rate) for regional headquarters' activities to enhance Hong Kong's position as an international financial centre and the bridge between Mainland and the rest of the international platform. In addition, we recommend the Government to provide group loss relief and loss carry back to enhance competitiveness and to encourage reinvestment of profits in Hong Kong operations. These measures will ultimately strengthen the economic development," said Jeremy.
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About ACCA
ACCA (the Association of Chartered Certified Accountants) is the global body for professional accountants. We aim to offer business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management. As the first global accountancy body entering into China, ACCA now has over 22,600 members and 42,500 students, with 7 offices in Beijing, Shanghai, Chengdu, Guangzhou, Shenzhen, Hong Kong SAR, and Macau SAR.
Founded in 1904, ACCA has consistently held unique core values: opportunity, diversity, innovation, integrity and accountability. We believe that accounting professionals bring value to economies in all stages of development. We aim to develop capacity in the profession and encourage the adoption of consistent global standards. Our values are aligned to the needs of employers in all sectors and we ensure that, through our qualifications, we prepare accountants for business. We work to open up the profession to people of all backgrounds and remove artificial barriers to entry, ensuring that our qualifications and their delivery meet the diverse needs of trainee professionals and their employers.
We support our 154,000 members and 432,000 students in 170 countries, helping them to develop successful careers in accounting and business, with the skills needed by employers. We work through a network of 83 offices and centres and more than 8,500 Approved Employers worldwide, who provide high standards of employee learning and development.
For further information, please visit www.accaglobal.com or follow ACCA Hong Kong at www.facebook.com/ACCA.HongKong.
