ACCA HK welcomes budget focus on Northern Metropolis, I&T, livelihoods

ACCA Hong Kong has expressed support for the 2026-27 Budget announced by the Financial Secretary, praising its focus on long-term development through initiatives advancing the Northern Metropolis, supporting Mainland enterprises "going global," promoting innovation and technology, and enhancing livelihoods.

Wilson Cheng, Chairman of ACCA Hong Kong, noted the government achieved tangible progress in expenditure control and economic revitalization. "The Consolidated Account recorded a surplus of HK$2.9 billion, broadly in line with ACCA's previous forecast," he said, adding the budget enhances Hong Kong's competitiveness and resilience.

The budget introduces measures to accelerate Northern Metropolis development, including a large-scale land disposal approach, financing arrangements for industry sites, and transferring Exchange Fund resources to support infrastructure projects. ACCA hopes future fiscal incentives will include cashflow-positive tax treatments for losses and "super tax depreciation allowances" for equipment.

Regarding support for Mainland enterprises expanding overseas, Gloria Chan, Co-chair of ACCA's Tax Sub-committee, welcomed the expansion of tax treaty networks. Hong Kong has signed 55 Comprehensive Avoidance of Double Taxation Agreements, including with Jordan, Maldives, Norway and Rwanda last year. Proposed preferential policies for corporate treasury centers and stamp duty relief will enhance Hong Kong's role as a "super connector."

Rebecca Wong, also Tax Sub-committee Co-chair, welcomed plans to enhance tax arrangements for R&D expenditures and promote intellectual property trading. She urged consideration of R&D expenses outsourced to Greater Bay Area subsidiaries.

Polly Wan, another Tax Sub-committee Co-chair, supported rates concessions, tax reductions, and increased allowances for social security recipients. She encouraged further measures including raising the Voluntary Health Insurance Scheme deduction limit to HK$16,000 and increasing Continuing Education Fund subsidies to HK$40,000.