Building Economic Resilience :
Insights from HK’s 2024/25 Budget Strategy

Financial Secretary Paul Chan Mo-po presented the 2024/25 Hong Kong Budget on 28 February with the theme “Advance with Confidence. Seize Opportunities. Strive for High-quality Development” with the goal to support enterprises, attract talents, aid HK and foreign entrepreneurs, and build the Hong Kong economy.

Learn the strategic role HK Budget plays in the city’s financial planning and explore the key elements of the recent 2024/25 Hong Kong Budget speech in this comprehensive blog : 

• HK’s Economic Roadmap to Success
• HK Budget’s Role in Strategic Financial Planning
• The 2024/25 Hong Kong Budget Highlights
• Empowering Business’s Future with AsiaBC

The Hong Kong Budget unveils the annual financial plan of the HK government, mapping out its revenue and spending plans for the upcoming fiscal year. It’s a strategic tool for allocating resources, implementing policies, and promoting economic growth and social well-being in Hong Kong.

The Hong Kong Budget serves as a roadmap that drives economic growth and improves the wellness of the people in the dynamic region of Hong Kong. Here are 5 purposes why the HK Budget is crucial for the city’s success:

1. Resource allocation. Guides the distribution of financial aid to sectors like education, healthcare, infrastructure, welfare and public services, aiming to meet community needs and enhance the quality of life in Hong Kong. 
2. Revenue management. Outlines the government’s revenue sources, creating effective financial planning, meeting expenditure demands, and ensuring fiscal stability with a comprehensive view of expected income from taxes, fees and other streams. 
3. Economic planning. The budget includes economic forecasts, fiscal strategies, and initiatives to stimulate growth, stability, competitiveness, investment, employment, and resilience, playing a pivotal role in managing and shaping the economy.
4. Policy implementation. Provides the financial framework and helps to execute policies, such as education enhancements, healthcare reforms, infrastructure development, environmental protection, and social welfare programs, putting policy objectives into concrete actions.
5. Public accountability and transparency. Presents a detailed breakdown of government income and expense, allowing citizens, businesses, and stakeholders to understand the use of public funding. It is open to review and discussion in the Legislative Council, ensuring elected representatives and the public have a voice in decision-making and government oversight.

• BR fees. Starting 1 April 2024, new rates for the BR fees are at HK$2,200 annually, waiving the HK$150 business registration levy for 2 years.
• Tax measure. Reduce profits tax for the assessment year 2023/24 by 100%, subject to a HK$3,000 ceiling, benefiting 160,000 HK enterprises.
• Rates relief. Rates concession for non-domestic and domestic properties for the first quarter of 2024/25, subject to a HK$1,000 ceiling.
• BUD fund. Inject HK$500 million with the launch of ‘E-commerce Easy’. Provide up to $1 million per enterprise for implementing e-commerce projects in the Mainland.
• SME financing guarantee scheme. Extend the application period for 80% and 90% Guarantee Products until the end of Mar 2026.
• Intellectual property trading. A legislative proposal to implement a “Patent Box” tax incentive with a reduction of 5% on the profit tax rate.
• Strategic enterprises. Creation of 13,000 job openings with more than 40 businesses establishing or expanding in HK, totalling $40 billion worth of investment.
• Top talent scheme. A comprehensive review is scheduled by mid-2024 and plans to host a Global Talent Summit to attract exceptional professionals and enhance global collaboration.
• Tax reduction. Concession on salaries tax and tax under personal assessment by 100% for 2023/24 with a maximum limit of $3,000.

The 2024/25 Hong Kong Budget emphasises its commitment to cultivating a bustling entrepreneurial ecosystem and attracting international talent through its impactful measures, positioning the city as a modern and competitive global hub for entrepreneurship and economic advancement. With a focus on growth and opportunity, this forward-thinking budget offers a conducive environment for businesses and individuals alike, shaping a bright future for Hong Kong’s dynamic business landscape.

At AsiaBC, we empower aspiring entrepreneurs and ambitious individuals with growth-oriented assistance. Our services are designed to provide expert guidance on incorporation procedures, strategic tax planning and facilitating smooth visa applications, helping you navigate the dynamic business landscape and pave your way to global success.

Seize the day! Leverage Hong Kong’s 2024/25 budget measures with a handful of expert guidance. Give us a nudge via WhatsApp +852 6547 1314 or email us at business@asiabc.com.hk, and get ready to dominate the HK business scene.