2015/16 HK Budget: KPMG Survey Results
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Transcript of 2015/16 HK Budget: KPMG Survey Results
© 2015 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. Printed in Hong Kong.
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KPMG conducted a survey in December 2014 to obtain
feedback from senior business executives on their
expectations for the 2015-16 Hong Kong Budget. The survey,
which received feedback from 398 senior executives, identified
the respondents’ key priorities for the 2015-16 Budget and the
main challenges to doing business in Hong Kong.
© 2015 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. Printed in Hong Kong.
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Key priorities for the 2015-16 budget
• Over 70% stated that the government’s
top priorities when preparing the 2015-16
Budget should be Hong Kong’s
competitiveness, or livelihood and
housing issues.
• Other key priorities include addressing
the disparity between rich and poor, and
the financial burden resulting from the
ageing population.
© 2015 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. Printed in Hong Kong.
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Methods to tackle a potential structural deficit in Hong Kong
• 53% said that the government should focus on stimulating economic growth, with a view to increasing tax revenue.• Other methods include reducing government expenditure, adjusting the existing tax rates, setting up a ‘Future Fund’ and introducing new taxes.
© 2015 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. Printed in Hong Kong.
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Challenges to doing business in Hong Kong
• 42% indicated that high operating costs
have the most negative impact on their
business in Hong Kong.
• Other challenges are related to the
external economic environment, the
availability of appropriate talent, and
infrastructure.
© 2015 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. Printed in Hong Kong.
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Proposed amendments to Hong Kong’s taxation system
• In terms of the tax system, 69% either want tax incentives for group headquarters / service companies in Hong Kong or favourable tax rates for SMEs.
• Other proposed amendments include a super-deduction for R&D expenditure and group tax loss relief.
© 2015 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. Printed in Hong Kong.
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Concerns about automatic exchange of tax
information
• 40% see the potential leakage of
confidential business information as the
top concern for automatic exchange of
tax information.
• Other concerns include additional
compliance costs, additional tax disputes,
and how the business relationship
between taxpayers and their business
counterparts will be affected.
© 2015 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. Printed in Hong Kong.
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SUMMARY – KPMG Survey Results
© 2015 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. Printed in Hong Kong.
The KPMG name, logo and ‘cutting through complexity’ are registered trademarks or trademarks of KPMG International Cooperative (KPMG International).
www.kpmg.com/cn/en/hk-budget
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