External Factor

Topics: Hong Kong, Mainland China, Inflation Pages: 4 (1156 words) Published: April 4, 2013
The External Factor

Political, Governmental & Legal Forces
Government spending and taxation policies
Hong Kong is a free port of less tax and low tax rate. The tax must to pay for enterprise only pay the profit tax every year. The normal rate of Profits Tax is 16.5% for corporations and 15% for unincorporated businesses. More companies have been attracted to invest in Hong Kong. Hong Kong does not impose value-added tax (VAT), goods and services tax (GST) or sales tax. The price of products can be listed lower than other countries. In 2013/14 Hong Kong Budget, the Financial Secretary hands out a number of "one-off" benefits. The "one-off" benefits include the waiver of business registration fees for 2013/14, reduce profits tax for 2012-13 by 75%, subject to a ceiling of $10,000, reduce salaries tax and tax under personal assessment for 2012/13 by 75%, subject to a ceiling of $10,000, electricity subsidy subject to a ceiling of $1,800, two additional months’ rent for public housing tenants, increase the basic and additional child allowances from the current $63,000 to $70,000 for each child, and waive rates for the whole year, subject to a ceiling of $1,500 per quarter.

State and local government policies and regulations
The Individual Visit Scheme began on July 2003 and allowed travelers from Mainland China to visit Hong Kong on an individual basis. The visas were valid for 7 days and could be applied for again upon return from Hong Kong to the Mainland. Since 2003, a total number of 78.4 million people from Mainland China through the "individual visit" visas to Hong Kong and the GDP of Hong Kong increased by the visitors from Mainland China.

Laws and regulations:
Employment (equal opportunity and workplace safety)
The Statutory Minimum Wage comes into force on 1 May 2013 and the initial rate is $30 per hour. It will increase the labour cost in Hong Kong. Patents, trademarks and copyrights
The Customs and Excise Department is...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay about Enviromental Factors
  • Marketing Pestle Factor Essay
  • Essay about External Forces That Effect Marks and Spencer
  • Internal & External Factors of Management Essay
  • Essay on External Factors
  • Essay on 1. Identify What Is Happening in the External Environment in Terms of the Following Factors... P6
  • External Factors Essay
  • Factors of Production Essay

Become a StudyMode Member

Sign Up - It's Free