Special Edition

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Mr Paul Chan Mo-Po, Hong Kong’s Financial Secretary, has recently delivered the second Budget of the current-term HKSAR Government. The Budget themes are: “Advance with Confidence. Seize Opportunities. Strive for High-quality Development”.

Looking retrospectively at 2023, although the challenging external environment continued to dampen growth momentum, the Hong Kong economy grew by 3.2%. Paul Chan forecasts that the Hong Kong economy will further expand, with growth anticipated to be 2.5-3.5% in real terms for the duration of 2024.

In January 2024, Hong Kong's external merchandise trade began the year on a positive note, with a notable year-on-year increase of 33.6% in total exports and 21.7% in imports. This achievement can be attributed to the continuous endeavors of the HKSAR Government in expanding Hong Kong's economic and trade network and supporting the business sector in exploring emerging markets. The robust resilience of Hong Kong's economy is widely acknowledged and is expected to sustain a positive momentum in the medium to long term.

Vistra summarises the key initiatives from the Budget that impact our clients’ businesses, focusing on 2 major aspects, along with action-points as to how your company can leverage the Budget to best advantage.

Similarly, the “Singapore Budget 2024” was unveiled on 16th February. For a comprehensive compilation and selective overview of the key measures, as compiled by the Vistra team, please read the details in this special newsletter edition.

视界特刊 | 区域客户尊享的每月精选资讯

近期，香港特区政府财政司司长陈茂波发表应届政府的第二份财政预算案，题为「坚定信心、抓紧机遇、推动高质量发展」。?

回顾2023年，尽管仍有外围环境制约，香港去年全年经济增长率达到3.2%；陈茂波预料今年香港经济全年实质增长介乎2.5-3.5%。

2024年首月，香港对外商品贸易实现开门红，整体出口和进口货值同比分别上升33.6%和21.7%。这一成绩与特区政府一直以来努力拓展香港的经贸网络、帮助本地商界打入新兴市场密不可分。业界人士普遍认为香港经济韧性强，中长期向好势头不变。

Vistra将从两大方面提炼预算案中或与我们客户及其业务最为相关的重点，并对“企业如何从预算案中受益”提出建议。

同期，《2024年度新加坡财政预算案》也已发布，我们亦进行了归纳提炼，您可在本期精选详细阅读。

The Hong Kong Budget

Multiple measures to inspire confidence

1. Stock Market
2. Attracting Enterprises and Capital
3. Pooling Talent
4. Supporting Enterprises and People

Read More (pdf p.2)

Accelerating high quality development

1. International Financial Centre
2. Moving towards a Green Future
3. Digital Economy
4. International Innovation and Technology Centre
5. International Trade Centre
6. Regional Intellectual Property Trading Centre

Read More (pdf p.5)

What does the Hong Kong Budget mean to you?

Vistra offers extensive assistance in leveraging the favourable initiatives proposed in the Hong Kong Budget to effectively reduce operational costs, enhance business efficiencies, and simplify their corporate compliance processes.

1. Forward planning is needed to optimise your tax position.

• Hong Kong has signed tax treaties with 48 countries or regions to date, including with the Chinese Mainland. To enjoy the tax benefits from Double Tax Treaty, applicants must apply for a Certificate of Residence from the Inland Revenue Department as proof of resident status in Hong Kong. Vistra can assess whether you are eligible to apply, and assist you in applying for Hong Kong tax resident status.
• Vistra provides support to companies through a thorough review of their overall tax position, enabling them to optimize tax planning strategies and maximize tax-related benefits.

2. Enhance your corporate governance and ESG position.

• For Hong Kong-listed companies or for companies who are planning to list in Hong Kong, Vistra can assist you in analysing and developing integrated Corporate Governance solutions, including ESG strategy and reporting. We ensure companies are in compliance with relevant regulations, thus reducing the risk of non-compliance.

3. Domicile or Re-domicile in Hong Kong to attract talents and eligible investors, and to maximise its unique role as a super-connector between China and the rest of the world.

• Vistra offers a one-stop solution for companies seeking to domicile or re-domicile in Hong Kong, along with expert talent immigration services. Our services alleviate administrative burdens, enabling companies to maintain focus on core business development plans.

4. Further consolidate your overseas investment structure, or expand your international business operations from a Hong Kong base.

• Vistra provides total solutions for global business expansion, to help companies get their overseas operations up and running as quickly as possible and in full compliance with all regulations.

Learn more about Vistra services:

Corporate Clients Services

Global Entity Governance

Multi-country Payroll

International Expansion Services

The Singapore Budget

The Singapore Budget 2024 was delivered on 16 February 2024, focusing on “Building Our Shared Future Together” to help tackle challenges faced by businesses and people.

The Budget sets up measures to help Singaporeans with their cost-of-living concerns, as well as reskilling and upskilling for better jobs. Some support measures are also introduced to help businesses manage rising costs and strengthen competitive advantages.

Key considerations from the Singapore Budget for businesses

Key measures for businesses in this Budget, amongst others, include:

• Grant of Corporate Income Tax Rebate for Year of Assessment (“YA”) 2024
• Introduction of the Refundable Investment Credit
• Extension and revision to Sections 13D, 13O and 13U tax incentive schemes
• Enhancement to the Progressive Wage Credit Scheme
• Enhancement to the Enterprise Financing Scheme

The Budget also announced that Singapore will move ahead to implement the Income Inclusion Rule and a Domestic Top-up Tax under Pillar 2 of the Base Erosion and Profit Shifting Initiative (BEPS 2.0), which will take effect from financial year starting on or after 1 January 2025, on large Multi-National Enterprise groups with global revenue of at least 750 million euros annually.?

Read More

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