Waiver of Business Registration Fees for One Year

Do I need to pay the levy for the Protection of Wages on Insolvency Fund for the waiver period?

Yes, the levy for the Protection of Wages on Insolvency Fund will continue to be payable.

Can a company incorporated or registered under the Companies Ordinance apply for concessionary refund if it has ceased business within the waiver period?

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, a company incorporated or registered under the Companies Ordinance 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 August 2010 and an expiry date on or after 31 July 2011, it can apply for concessionary refund in respect of the waiver period, i.e. 1 August 2010 to 31 July 2011, WHETHER OR NOT the company has ceased business during the waiver period. Please refer to A6 below on how the refund will be calculated.

Can a business operator apply for concessionary refund in respect of his 1-year registration certificate that expires between 1 August 2010 and 31 July 2011 but he is not required to renew the registration certificate because of cessation of business?

No. The business would not have paid any registration fee for that certificate because the fee was waived under the Revenue (Reduction of Business Registration Fees) Order 2009.

I commenced my business in February 2010. Can I enjoy a waiver of the fee payable in respect of the first two years immediately if I elect for a 3-year certificate upon the application for business registration?

No. The proposal only relates to the waiver of one-year registration fees for new certificates or renewal certificates with a commencement date falling within the period from 1 August 2010 to 31 July 2011.

When the 3-year certificate is issued, the business registration fee for the first year ($2,000) will have been waived by virtue of the Revenue (Reduction of Business Registration Fees) Order 2009. Only the balance of $3,200 will be payable. This amount should be paid. After the relevant budget legislation is passed by the Legislative Council, you may apply for concessionary refund of the business registration fee paid in respect of the period from 1 August 2010 to 31 July 2011. Please refer to A6 below on how the refund will be calculated.

My 3-year certificate will expire in April 2010. Can I enjoy a waiver of the fee payable in respect of the first two years immediately upon renewal?

When the 3-year certificate is due for renewal in April 2010, the business registration fee for the first year ($2,000) will have been waived by virtue of the Revenue (Reduction of Business Registration Fees) Order 2009. Only the balance of $3,200 will be payable. This amount should be paid. After the relevant budget legislation is passed by the Legislative Council, you may apply for concessionary refund of the business registration fee paid in respect of the period from 1 August 2010 to 31 July 2011. Please refer to A6 below on how the refund will be calculated.

If you want to change to a 1-year certificate upon renewal, you may revoke your election in writing. Please give your notification to the Commissioner at any time not later than 1 month before the expiry of your current 3-year certificate.

How is the amount of concessionary refund going to be calculated?

The amount to be refunded 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 August 2010 to 31 July 2011) for which the concession applies, and the actual amount of fees paid in respect of the waiver period. The detailed calculations with examples will be announced after the relevant budget legislation is passed by the Legislative Council.