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2016-17 Budget - Waiver of Business Registration Fees for One Year FAQ
1.
Q:
Do I need to pay the levy for the Protection of Wages on Insolvency Fund for the Waiver Period?
2.
Q:
Can a company incorporated or registered under the Companies Ordinance (Cap. 622) apply for concessionary refund if it has ceased business within the Waiver Period?
A:
Normally, a company cannot claim refund of the business registration fee paid if it ceases business during the period covered by the business registration certificate, since under the Business Registration Ordinance (Cap. 310), a company incorporated or registered under the Companies Ordinance (Cap. 622) is deemed to be a person carrying on business notwithstanding its cessation of business.
However, under the concessionary refund scheme, where the company is holding a 3-year certificate with a commencement date before 1 April 2016 and an expiry date on or after 31 March 2017, it can apply for concessionary refund in respect of the Waiver Period, i.e. 1 April 2016 to 31 March 2017, WHETHER OR NOT the company has ceased business during the Waiver Period.
Please refer to A6 below on how the refund will be calculated.
3.
Q:
My business received its renewal business registration certificate (1-year) in the middle of February 2016 (i.e. just before the Budget was announced) and the business registration fee and levy demanded will be due in April 2016. Is my business required to pay the fee and levy demanded on or before the due date? How can my business benefit from the waiver?
A:
Yes, your business is still required to pay the fee and levy demanded on or before the due date. Your business can benefit from the waiver when the renewal certificate is issued in February 2017 since the business registration fee will be waived and only the levy will be payable.
4.
Q:
My business’s business registration certificate will be expired in April 2016. Is my business required to pay the business registration fee and levy upon renewal?
A:
The renewal business registration certificate will be issued to your business in March 2016. Taking into account of the proposal of waiver of business registration fee, this Office will NOT demand the business registration fee for the Waiver Period in the renewal certificate. For a 1-year certificate, only the levy of $250 is payable. For a 3-year certificate, the business registration fee and levy payable will be $3,950 ($3,200 + $750)(i.e. reduced by $2,000).
5.
Q:
I applied for company incorporation just before the proposal of waiver of business registration fee was announced in the Budget and paid the business registration fee and levy. How can I benefit from the waiver?
A:
If you have elected for a 1-year certificate which will commence before 1 April 2016, your company can benefit from the waiver when its business registration certificate is due for renewal within the Waiver Period since the business registration fee will be waived and only the levy will be payable. If you have elected for a 3-year certificate which will commence before 1 April 2016, your company can apply for concessionary refund in respect of the Waiver Period under the concessionary refund scheme since the company will not be required to renew its business registration certificate within the Waiver Period.
Please refer to A6 below on how the refund will be calculated.
6.
Q:
How to calculate the amount of concessionary refund?
A:
The refund will be calculated by reference to the validity period of the certificate held by the business, the number of days within the Waiver Period (i.e. 1 April 2016 to 31 March 2017) for which the concession applies, and the actual amount of fees paid in respect of the Waiver Period. Detailed calculations with examples will be announced after the relevant legislative amendment is passed by the Legislative Council.