The Financial Secretary in December 2019 announced certain tax relief measures, including provisions for making tax payments in instalments and subsidies for small- and medium-sized enterprises (SMEs). These measures are intended to provide support for enterprises and with regard to employment in the current social and economic environment.
The package of tax measures includes the following:
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The Financial Secretary stated that the government’s intention is for expedited implementation of these measures.
These measures—in particular, the surcharge-free tax instalment payment options—could be beneficial in easing cash-flow situations, although approval of the relief would be on a case-by-case basis. In addition, when taxpayers foresee their taxable profits would be substantially lower (or even in a loss situation) in the year of assessment 2019/20, application for holding over the 2019/20 provisional tax could be a practical solution to help ease their cash-flow situation. With assessments now being issued, there is a short “window of time” for taxpayers to assess their options because the holdover application must be filed by the later of:
For more information contact a KPMG tax professional:
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