Deloitte, Deloitte, Hong Kong surplus 72 billion proposed tax optimization proposals

January 20 Afternoon news Deloitte today released the 2011-12 Hong Kong budget forecast that the fiscal surplus of the government in 2010-11 is expected to reach $72 billion (HK $, the same below), well above the government's projected $25.2 billion deficit.　　The bank also said it recommended that the Government should introduce a special tax exemption for home ownership and a profit tax waiver for renminbi bonds. SHENGMU, Chief Knowledge officer and tax partner of Deloitte, said that since the government's revenue from land sales was higher than expected last year and that gross domestic product (GDP) was expected to exceed expectations, the government's fiscal surplus would reach $72 billion in 2010-11, is much higher than the government's projected $25.2 billion trillion deficit last year.　　She also predicts that Hong Kong's GDP will grow by 7% in 2010 and a slight slowdown to 6% this year. The bank has made several recommendations on the budget for the next fiscal year, focusing on the optimization of special tax breaks for home ownership.　　At present, the home purchase tax concession in Hong Kong only applies to the interest portion of the purchase contribution, which is capped at $100,000 per annum and is deducted for 10 years. Deloitte proposes to extend this tax relief to the extent that tax relief is available for rent or purchase contributions (including the principal and interest portion), with a maximum of $100,000 per annum and a deduction of 10 years.　　Luo Shengmu said that Hong Kong people are generally worried about the housing situation, which can alleviate the pressure on the public, especially the middle class, to buy houses and rent. The Hong Kong government last year introduced additional stamp duty on short-term transactions in residential property, and when asked about the effect of additional stamp duty, Luo Shengmu said that the introduction of additional stamp duty was aimed at curbing property speculation and had achieved some effect.　　Interest rates on property purchases are low, and it is expected that the stamp duty does not have much impact on long-term investors and the buyers they live in. Deloitte also suggested that the government allow all renminbi bonds issued in Hong Kong to be exempt from profits tax, and that only renminbi bonds issued in Hong Kong would be exempt from profits tax, while the renminbi bonds issued by other institutions would be taxed at a certain rate.　　The bank believes that this will further promote the development of renminbi bond business in Hong Kong. In addition, the Bank's proposals on the budget also include allowing SMEs to receive a 150% tax deduction in respect of office rents, thereby promoting the development of SMEs, preventing the proposed arrangement for the same levy on the mainland to increase investment in Hong Kong, and widening the tax bands from $40,000 to $50,000,　　To reduce the tax on low-income people. The 2011-12 budget of the Hong Kong government will be formally announced by the Financial Secretary, Mr John Tsang, in the Hong Kong Legislative Council 11 o'clock in the morning February 23, 2011. (Xiao Ying from Hong Kong)