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Hong Kong Anti-epidemic Fund
To enhance Hong Kong’s ongoing work in the fight against the novel coronavirus infection and to provide support and assistance to industries and members of the public affected by the epidemic, the Government of Hong Kong Special Administrative Region (“the Government “) announced the setting up of a $30 billion Anti-epidemic Fund on 14 February 2020. As the epidemic continues and becomes more severe, the Government announced on 8 April 2020 the second round of $137.5 billion Anti-epidemic Fund measures to provide further assistance to the affected sectors and members of the public.
First Round of Anti-epidemic Fund
First round of $30 billion Anti-epidemic Fund for the 24 measures, details are listed in https://www.coronavirus.gov.hk/eng/anti-epidemic-fund-1.html
Second Round of Anti-epidemic Fund
The second round of HK$137.5 billion of Anti-epidemic Fund measures are announced on April 8, 2020, to further support businesses and residents affected by the COVID-19 outbreak.
For details, please click https://www.coronavirus.gov.hk/pdf/fund/20200408_supplementary_information_en.pdf
HONG KONG ANTI-EPIDEMIC FUND www.kennethchaucpa.com
Second Round of Anti-epidemic Fund
A chart from SCMP dated on April 8,2020:
Highlights
We would like to provide the below Three Highlights of this Second Round of Anti-epidemic Fund which can help most of the SMEs.
1. Employment Support Scheme 2. Special 100% Loan Guarantee under the SME Financing
Guarantee Scheme 3. Tax payment deadline automatically extended by three months
HONG KONG ANTI-EPIDEMIC FUND www.kennethchaucpa.com
Highlights
1. Employment Support Scheme
In the second round of Anti-epidemic Fund measures which included an HK$80 billion Employment Support Scheme ("ESS") to help employers retain employees and avoid redundancies.
Details of the ESS are as follows:
• Eligibility: The Government will provide a wage subsidy to eligible employers to retain employees and avoid redundancy. All employers who have been making MPF contributions for employees (except for Government employees and employees of statutory bodies and subvented organisations) are eligible. An eligible employer will have to undertake that they cannot implement redundancy. The precise terms of the undertaking are not yet known and the devil will be in the details.
• Amount: The amount of the subsidy will be based on 50% of the monthly wages of the employee capped at HK$18,000, meaning a maximum subsidy of HK$9,000 per month.
• Duration: 6 months.
• Form of payment of the subsidy: The subsidy will be paid to eligible employers in 2 payments, with the first being not later than June 2020.
Details of how to apply for the subsidy are not yet available, and the terms of the undertaking to be given by participating employers will be announced by the Government.
HONG KONG ANTI-EPIDEMIC FUND www.kennethchaucpa.com
Highlights
2. Special 100% Loan Guarantee under the SME Financing Guarantee Scheme
The loan guarantee is applicable to SMEs in all sectors, including those mostly affected by the coronavirus outbreak such as retail outlets, travel agents, restaurants, cinemas, karaoke establishments and transport operators, etc. The loans will be guaranteed by the Government, with a total loan amount of HK$20 billion.
Eligible enterprises should have been operating for at least three months as at end-December 2019, and have suffered at least a 30% decline in sales turnover in any month since February 2020 compared with the monthly average of any quarter in 2019.
The maximum amount of the loan per enterprise is the total amount of employee wages and rents for six months, or HK$2 million, whichever is lower.
An interest rate of the Prime Rate minus 2.5% per annum (i.e. current interest rate at 2.75%) will be charged. All guarantee fee will be waived. The maximum repayment period of a loan under the guarantee is 36 months, with an optional principal moratorium for the first six months, so as to lessen immediate repayment burden of the enterprises.
For more details, please click https://www.hkma.gov.hk/eng/news-and-media/press-releases/2020/02/20200226-3/
HONG KONG ANTI-EPIDEMIC FUND www.kennethchaucpa.com
Highlights
3. Tax payment deadline automatically extended by three months
To ease the financial burden and cash flow of businesses and individuals arising from COVID-19, tax payment deadlines for salaries tax, personal assessment and profits tax demand notes for the year of assessment 2018/19 which fall between April to June of this year are automatically extended by three months.
The Inland Revenue Department announced on April 9 that if taxpayers for salaries tax, personal assessment and profits tax have already settled the first payment in accordance with the demand note for the year of assessment 2018/19, the deadline for the second payment is automatically extended for three months from the date specified on the demand note. The above relief measure is not applicable to taxpayers who have to settle their tax liabilities before departing Hong Kong, taxpayers paying property tax and taxpayers who have been approved to pay their taxes by instalments. For more details, relevant examples and FAQ can be found from the website of the Inland Revenue Department (www.ird.gov.hk/eng/tax/extension.htm).
HONG KONG ANTI-EPIDEMIC FUND www.kennethchaucpa.com
About Kenneth Chau & Co.
Kenneth Chau & Co, based in Hong Kong since 1960, have built reputation and professional expertise through a team of Certified Public Accountants and Certified Tax Advisers. Our professional team combines many years of expertise in the areas of Audit, Taxation, and Corporate Secretarial & Advisory services.
Kenneth Chau & Co. is a member firm of MGI Worldwide.
About MGI Worldwide
MGI Worldwide is a leading international network of audit, tax, accounting and consulting firms with more than 5,000 professionals in over 260 locations.
HONG KONG ANTI-EPIDEMIC FUND www.kennethchaucpa.com
