Asia SGE | ACCA Hong Kong Applauds Budget 2026: A Bold Blueprint for the Northern Metropolis, I&T, and Livelihoods

Hong Kong’s professional community has given a strong vote of confidence to the Financial Secretary’s 2026-27 Budget. The Association of Chartered Certified Accountants (ACCA) Hong Kong issued a statement yesterday praising the budget for its strategic focus on long-term development, specifically its initiatives to accelerate the Northern Metropolis project, support Mainland enterprises in "going global," boost innovation and technology (I&T), and enhance citizens' livelihoods.

Wilson Cheng, Chairman of ACCA Hong Kong, highlighted the government's tangible progress in managing public finances. He noted that the HK$2.9 billion surplus in the Consolidated Account was "broadly in line with ACCA's previous forecast," indicating a realistic and well-executed fiscal plan. Mr. Cheng stated that the budget effectively enhances Hong Kong's competitiveness and economic resilience.

Here’s a breakdown of ACCA Hong Kong's analysis of the budget's key pillars:

Accelerating the Northern Metropolis

The budget introduces practical measures to turn the Northern Metropolis vision into reality, including a large-scale land disposal approach, special financing for industry sites, and the deployment of Exchange Fund resources for infrastructure.

• ACCA's View: While welcoming these steps, ACCA hopes future budgets will introduce more targeted fiscal incentives. Their recommendations include "cashflow-positive tax treatments for losses" and "super tax depreciation allowances" to encourage businesses to invest in the necessary equipment and technology for this massive project.

Strengthening the "Super Connector" Role

To solidify Hong Kong's position as the premier hub for Mainland enterprises expanding overseas, the budget focuses on expanding the city's network of tax treaties.

• ACCA's View: Gloria Chan, Co-chair of ACCA's Tax Sub-committee, specifically welcomed the expansion of Hong Kong's Comprehensive Avoidance of Double Taxation Agreements (CDTAs), which now number 55 following recent signings with Jordan, Maldives, Norway, and Rwanda. She noted that proposed preferential policies for corporate treasury centers and stamp duty relief will further enhance Hong Kong's appeal as a "super connector" for global business.

Boosting I&T and R&D

Recognizing that future growth is driven by innovation, the budget includes plans to enhance tax arrangements for research and development (R&D) expenditure and promote intellectual property (IP) trading.

• ACCA's View: Rebecca Wong, also a Tax Sub-committee Co-chair, supported these measures but urged the government to think regionally. She specifically recommended that tax deductions should also cover R&D expenses outsourced to subsidiaries in the Greater Bay Area, fostering deeper integration and innovation within the region.

Addressing Livelihood Concerns

On the social front, the budget provides immediate relief through rates concessions, tax reductions, and increased allowances for social security recipients.

• ACCA's View: Polly Wan, another Co-chair of the Tax Sub-committee, supported these measures. She encouraged the government to go further in future budgets to enhance social welfare and encourage self-improvement. Her suggestions include raising the Voluntary Health Insurance Scheme (VHIS) deduction limit to HK$16,000 and increasing Continuing Education Fund (CEF) subsidies to HK$40,000.

Conclusion

Overall, ACCA Hong Kong's analysis paints a picture of a budget that is both fiscally responsible and strategically ambitious. By balancing immediate support for citizens with long-term investments in infrastructure, technology, and international connectivity, the 2026-27 Budget appears well-crafted to steer Hong Kong towards sustainable growth and reinforce its unique advantages on the global stage.

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