Hong Kong: New relief measures to support businesses and individuals (COVID-19)

A new round of relief measures to support businesses and individuals in response to COVID-19

New relief measures to support businesses and individuals

The Hong Kong government on 14 January 2022, unveiled a new round of relief measures of HKD3.57 billion to support businesses and individuals in response to the coronavirus (COVID-19) pandemic.

Review of tax relief

The relief measures will provide funding to certain hard-hit sectors such as the tourism sector and the food and beverage industry. This round of relief measures under the Anti Epidemic Fund (AEF) consists of two parts:

  • An additional funding of HKD2.81 billion to business premises and individuals directly affected by the latest round of social distancing measures (e.g., catering business subsidy scheme, fitness centre and sports premises subsidy scheme, one-off relief grants to instructors, coaches, trainers or operators of interest classes engaged by schools)
  • An additional funding of HKD760 million to trades that have not seen any business revival since the onset of the pandemic (i.e., the tourism industry, aviation support services and cross-boundary passenger transport trade)

Key features of this fifth round of relief measures also include:

  • A one-off subsidy ranging from HKD50,000 to HKD250,000 will be provided to certain eligible food licence holders in operation depending on the licensed area of its premises.
  • A one-off cash subsidy of HKD50,000 or more will be provided to each eligible licensed travel agent depending on the number of staff.
  • A one-off subsidy ranging from HKD3 million to HKD8 million will be provided to aviation support service companies depending on size.
  • A one-off subsidy of HKD50,000 to each eligible fitness centre and sports premises.

The Inland Revenue Department also announced that the block extension due date for filing the 2020/21 profits tax returns for filing ‘M’-code loss returns (i.e., accounting date falling within 1 January 2021 to 31 March 2021) is extended from 31 January 2022 to 28 February 2022.

For more information contact a KPMG tax professional:

David Ling | +1 609 874 4381 | davidxling@kpmg.com

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