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ACCA Hong Kong Welcomes Budget and Recommends Tax Measures to Build a Favourable Business Environment
ACCA (the Association of Chartered Certified Accountants) Hong Kong welcomes the 2008/09 budget delivered by Mr John Tsang, the Financial Secretary which offers measures to 'leave wealth with people', care for the underprivileged community and enhance environmental improvement under the budget surplus. We believe the measures announced will be widely accepted by all walks of life including the lower income group, middle class, senior citizens and people with disabilities.
ACCA Hong Kong agrees with the principle of enhancing sustainability in managing public finances. The Government should solidify the economic foundation in Hong Kong while addressing different requests made in the society. Fergus Wong, ACCA Hong Kong Tax Sub-committee Co-Chairman stated, "In view of consolidating our position as Asia's world city and strengthening our competitive edge, ACCA Hong Kong welcomes the various tax relief measures, including the one-off tax rebates to share wealth with the community; lowering of the profits tax rate; and widening the salaries tax bands. We share the same view with the Government and believe that by lowering the profits tax rate and salaries tax, it will help attracting more businesses and international talent to work in this place."
In addition to tax rates, ACCA Hong Kong recommends that more measures should be applied to strengthen the favourable business environment. Recommendations include concessionary tax rate for regional headquarters set up by multi-national organisations in Hong Kong; group loss relief and loss carry back. ACCA Hong Kong has been recommending these measures to the Government, and some of the neighbour countries have already implemented such measures. We also recommend tax reduction for research and development expenses incurred by businesses to further encourage creative industry and sustaining the financial stability.
ACCA Hong Kong urges the Government to speed up the negotiation of comprehensive double taxation treaties with Hong Kong's major trading partners so as to create a more advantageous tax environment for cross-border and cross-nation enterprises.
For further information please contact:
Carmen Lee Corporate Communications Manager (852) 2524 4988