HONG KONG, Feb. 20, 2013 /PRNewswire/ -- ACCA (the Association of Chartered Certified Accountants) Hong Kong recommends the government should adopt fiscal policies in the 2013/14 budget to impose long-term tax policies and related measures to build a business enabling environment and improve people's well-being.
Achieve a business enabling environment
ACCA Hong Kong agrees that having a fair and competitive taxation system could effectively enhance the competitive edge of Hong Kong. ACCA Hong Kong believes that this is the right time for the incoming administration to take a proactive strategy to facilitate the long-term development of Hong Kong economy. ACCA Hong Kong proposes the government to set up an independent tax consultative group to advise on how tax policies could better be used to steer Hong Kong's economic development in a long run.
Fergus Wong, ACCA Hong Kong Tax Sub-committee Co-chairman says, "Having a business enabling environment is essential for economic development which will ultimately provide employment and business opportunities for Hong Kong's current and future generation. Our proposals suggest that an independent tax consultative group should be set up, with a proactive approach on recommending how tax policies should be formulated. This will further enhance our business environment, and will help businesses cope with challenges."
ACCA Hong Kong reiterates its recommendations to provide group loss relief based on the fundamental principle of equity, and to allow tax loss of a business to be carried back, relieving loss making companies from financial pressure whilst encouraging profitable operations to reinvest in Hong Kong operations. ACCA Hong Kong also recommends a tax deduction of 200% for qualifying research and development expenditure for promoting development of brand name etc.; and a concessionary tax rate to income derived from intellectual property owned by a Hong Kong company but used outside Hong Kong so as to develop Hong Kong as an intellectual property hub.
Jeremy Ngai, ACCA Hong Kong Tax Sub-committee Co-Chairman adds, "In order to secure Hong Kong's position as an international financial centre and the bridge between Mainland and the rest of the international platform, we continue to recommend a concessionary tax rate (e.g. half rate) for regional headquarters' activities so as to enhance Hong Kong's attractiveness to foreign investors."
Relieve tax burden for middle income group
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. Moreover, an annual tax deduction for private medical insurance premium capped at HK$15,000 is recommended to encourage people to acquire medical insurance and help lowering the medical expenses of the government.
ACCA Hong Kong appeals to the government to adhere to the principle of fiscal prudence, and suggests the government should continue to monitor the public expenditure as well as the cost effectiveness periodically to adhere to the core principle of ‘Big Market, Small Government' for sustainable growth.
Please visit the following link for the ACCA Hong Kong Budget Proposal 2013/14:
http://hongkong.accaglobal.com/hongkong/members/information/documents/budget
Notes to editors:
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.
