Hong Kong Government’s new set of measures to help SMEs

Published On - 6 mai, 2020

Albert Hui Hong Kong, Actu Orbis

On March 24th, we published an article about Hong Kong fighting back against the Corona Virus through the implementation of a 1st round of measures aimed at helping the economy.

So far, the most impacting measures the Hong Kong Government announced are the following:

  • Profits tax reduction in Year of Assessment (YA) 2019-20 subject to a HKD20,000 ceiling.
  • Waiver of Business Registration fees for 2020-21 (HK$2,000) and Annual Return fees for 2 years (HK$105).
  • Government guaranteed low-interest loan of up to HK$2 million.
  • Waiver of rates for non-domestic properties for 2020-21 (subject to certain limits).
  • Discounts on electricity, water and sewage costs for non-domestic properties.
  • Six-month rental subsidy for local recycling firms.

Overall, the measures announced provide no significant relief except perhaps the Government guaranteed loan should you be eligible. Even then, it isn’t free money or a subsidy but a loan which companies still need to pay back!

Since then, there have been further developments in said measures to help those in need, and some measures appear to be significantly more accessible and impacting, including those aimed at encouraging job retention to prevent massive layoffs. Those measures are limited and mainly target very local businesses (vs tradings or holdings), but some may be of your interest, especially if you have a physical presence in Hong Kong.

Here is a summary:

Wage and training subsidies – Employment Support Scheme (ESS)

  • Subsidy of 50% of salary at a “specified month” (capped at a salary of HK$18,000) for 6 months shall employers undertake not to make workers redundant during the subsidy period, and to spend 100% of the subsidy on paying wages for their employees. To be disbursed to employers in two tranches, with the first before end-June 2020.
  • Various subsidies are available for staff skills upgrading and training.

Subsidies for businesses affected by the epidemic

  • Eligible holders of food license are receiving a one-off grant of HK$80,000 or HK$200,000 each.
  • One-off subsidy for construction companies (and construction workers).
  • One-off relief grant of HK$80,000 for qualified retail shops.
  • “Arts and Culture Sector Subsidy Scheme” for arts organizations and freelance arts workers to pay the salaries of their staff, contractors and freelance workers as much as possible.
  • Subsidy to licensed travel agents ranging from HK$20,000 to HK$200,000 and other subsidies for travel agents’ staff, active freelance tourist guides and tour escorts, licensed hotels and tour coach drivers.
  • Various subsidies for passenger transport companies (bus companies, ferry operators, tramway, taxi, minibus, school bus, etc.).
  • Subsidy ranging from HK$250,000 to HK$2.2 million (paid in two tranches during a 6-month period) for licensed catering outlets selling or supplying food for consumption on their premises (mainly to support employment) and one-off relief grant of HK$80,000 to each eligible catering outlet (namely, tuck shops, canteens, and restaurants) in schools, universities, and self-financing post-secondary institutions.
  • One-off subsidies in the aviation industry (eligible air operators and aviation support services and cargo facility operators).
  • One-off subsidy of HK$20,000 or HK$10,000 to each construction-related enterprise not eligible for the first-round measures and HK$7,500 to each eligible construction worker; and
  • One-off grant of HK$7,500 to instructors, coaches, trainers, organizations providing coaching, etc.

Increase of maximum 100% guaranteed loan amount from 2 to 4 million HKD

Needless to say, we want to be on our customers’ side during this difficult period. If we can help somehow, within the limits of our own difficulties, you can count on our will to do our best to find solutions by listening, showing understanding, availability and flexibility.

For a more complete and detailed view on the measures we are referring to, you may click on the following official Government link: https://www.coronavirus.gov.hk/pdf/fund/CE-Measure-12-eng.pdf.

Moreover, do not hesitate to contact us at contact@orbis-alliance.com if you need any assistance. We are happy to provide more information, or address any doubts you may have regarding your eligibility for any of the various measures.