Covid-19 - Summary of Measures

CHINA

To assist enterprises to cope with the pressure brought about by the economic downturn and alleviate their burden, the HKSAR Government has announced various measures to support enterprises and safeguard jobs, including:-

1. the first round anti-epidemic fund of HK$30 billion (US$4 billion);
2. the HK$120 billion (US$15.5 billion) relief package in the Hong Kong 2020-2021 Budget; and
3. the second round anti-epidemic fund of HK$137.5 billion (US$18 billion).

Announced on 5 February 2020, first round of Anti-epidemic Fund HK$30 billion

1. One-off subsidy of HK$80,000 to each licensed travel agent, each eligible licensed light refreshment restaurant, food factory, bakery, fresh provision shop, and siu mei and lo mei shops;
2. One-off subsidy of HK$200,000 to each eligible licensed restaurant and factory canteen;
3. One-off subsidy of HK$5,000 to each eligible licensed hawker;
4. A subsidy of up to HK$80,000 to each licensed guesthouse;
5. Setting aside HK$5.6 billion to provide a one-off subsidy to each eligible retailer (HK$80,000 each);
6. Setting aside HK$3.23 billion to provide comprehensive and continuous financial support to the various transport trades;
7. Setting aside HK$1.02 billion to support the convention and exhibition industry by providing subsidies to participants and organisers of major conventions and exhibitions;
8. Allocating HK$150 million to support the arts and culture sector by providing subsidies to arts and cultural groups;
9. Setting aside HK$380 million to provide a six-month rental waiver for tenants and startups at Hong Kong Science Park, Cyberport and industrial estates to support the innovation and technology sector;
10. Providing subsidies to training bodies appointed by the Employees Retraining Board, at a total cost to the Government of about HK$90 million; and
11. Subsidy of HK$50,000 to each eligible contractor, subcontractor and consultant to strengthen hygienic control measures. The Government announced on April 1, 2020, that the beneficiaries of the support measures concerned will be extended to cover workers who are engaged in smallscale works outside construction sites as well as small and medium enterprise (SME) consultants which are company members of professional institutions and associations. Each eligible worker will receive a subsidy of HK$1,000 and each eligible consultant will get HK$20,000.

Announced on 26 February 2020, Hong Kong 2020-21 Budget HK$120 billion

1. Providing an extra allowance to eligible social security recipients, equal to one month's standard rate payment of Comprehensive Social Security Assistance, Old Age Allowance, Old Age Living Allowance or Disability Allowance. Similar arrangements will apply to recipients of the Work Incentive Transport Subsidy;
2. Paying one month's rent for lower income tenants living in public rental units of the Hong Kong Housing Authority and the Hong Kong Housing Society;
3. Paying the examination fees for school candidates sitting for the 2021 Hong Kong Diploma of Secondary Education Examination;
4. A cash payout of HK$10,000 to Hong Kong permanent residents aged 18 or above;
5. Introducing a concessionary, low-interest loan under the SME Financing Guarantee Scheme, under which a 100 per cent guarantee will be provided by the Government;
6. Reducing profits tax, salaries tax and tax under personal assessment for 2019-20 by 100 per cent, subject to a ceiling of HK$20,000;
7. Waiving rates for non-domestic properties for four quarters of 2020-21, subject to a ceiling of HK$5,000 per quarter in the first two quarters and a ceiling of HK$1,500 per quarter in the remaining two quarters;
8. Waiving rates for residential properties for four quarters of 2020-21, subject to a ceiling of HK$1,500 per quarter for each rateable property;
9. Waiving the business registration fees for 2020-21;
10. Waiving the registration fees for all annual returns (except for late delivery) charged by the Companies Registry for two years;
11. Providing a subsidy to each eligible, non-domestic household account for four extra months to cover 75 per cent of their monthly billed electricity charges, subject to a monthly cap of HK$5,000 per account;
12. Waiving 75 per cent of water and sewage charges payable by non-domestic households for four extra months, subject to a monthly cap of HK$20,000 and HK$12,500, respectively, per household;
13. Providing a six-month rental subsidy to local recycling enterprises;
14. Reducing rental by 50 per cent for another six months for eligible tenants of government properties, government land and the EcoPark;
15. Reducing rentals and fees for eligible operators of properties covered by short-term waivers by 50 per cent for another six months;
16. Providing hirers of civic centres under the Leisure and Cultural Services Department with a 50 per cent reduction of hire charges for another six months; and
17. Offering another six months of fees and rent reduction for cruise lines and existing tenants of the Cruise Terminal.

Announced on 8 April 2020, second round of Anti-epidemic Fund HK$137.5 billion

1. Wage subsidies will be provided to eligible employers - Capped at HK$9,000 per month (i.e. 50 per cent of median monthly wage in Q2 2019 of HK$18,000) per employee for six months;
2. Providing support for 16 types of specific sectors, including catering, education, transport, tourism, construction, etc.;
3. Enhancing the SME Financing Guarantee Scheme - additional expenditure of around HK$11.69 billion; additional guarantee commitment of HK$30 billion;
4. Easing burden of transport costs, including support on a 50:50 matching basis for the MTR Corporation to provide a 20 per cent fare discount and relaxing temporarily the monthly threshold of the Public Transport Fare Subsidy Scheme; and
5. Deferral of tax payments for three months.

If you have any questions regarding this or any of the other initiatives offered to those affected by the current disruption, please contact Andrew Cheng at andrew.cheng@chengcpa.com.hk.