8 June 2020
The Honourable Paul Chan Mo-po, GBS, MH, JP
25/F, Central Government Offices
2 Tim Mei Avenue, Tamar
Dear Financial Secretary
The Hong Kong General Chamber of Commerce is pleased to submit our recommendations on tax relief measures to provide further assistance to businesses that have been hard-hit by the effects of COVID-19.
Almost one third (31%) of businesses surveyed by the Chamber in May expressed worries that they would only be able to survive for up to six months due to the unprecedented economic damage that the pandemic has wrought. While 16% said they could survive for up to six months, another 12% said they could only last for no more than four months.
As businesses struggle to cope under these extraordinary circumstances, government assistance could not be more important. While we welcome the two rounds of anti-epidemic relief measures rolled out by the Government, in addition to those in your recent Budget, we believe more could be done in the area of taxation policy.
To that end, we are pleased to submit our suggestions on a range of tax relief measures to help businesses stay afloat during this difficult time.
Submission by the Hong Kong General Chamber of Commerce on Tax Relief Measures in Response to COVID-19
Since the beginning of 2020, the Government has launched a series of support measures to help businesses stay afloat amid the COVID-19 pandemic. The Hong Kong General Chamber of Commerce welcomes such efforts but believes that more could be done to assist businesses during these difficult times. The following sets out our proposals on tax relief measures to provide further assistance to businesses as they struggle to cope under these extraordinary circumstances.
Provisional Profits Tax
 Singapore’s IRAS, UK’s HMRC, Australia’s ATO and the OECD have since published relevant guidance under such exceptional circumstances.
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