The Hong Kong government has created the Technology and Voucher Program (TVP). This program is aimed at helping local entities become more competitive. It does this by providing funding for the utilization of technological services and solutions.
This article provides a comprehensive guide to TVP. It covers eligibility requirements, funding scope, application procedures, and auditing and monitoring requirements. Understanding these key components is essential.
What is TVP?
TVP is a government program. It subsidizes local entities, except those listed, to help them become more competitive in the long term. The program offers financing for technological services and solutions that will improve applicants’ productivity, upgrade or transform their business processes.
Eligibility Requirements for TVP
To be eligible for TVP, applicants must fulfill the following requirements:
- Be registered in Hong Kong under the Business Registration Ordinance (Cap. 310) or be incorporated and registered in Hong Kong under the Companies Ordinance (Cap. 622) or be established in Hong Kong by relevant ordinances as statutory bodies.
- Not be a listed company in Hong Kong, nor a government organization or subsidiary thereof.
- Have substantive business operations in Hong Kong at the time of application.
TVP Funding Scope
TVP funding is applicable to projects that emphasize technological services and solutions that improve productivity or upgrade or transform business processes. The following costs are covered under TVP:
- Technology consultancy services to recommend technological services/solutions to be adopted.
- Purchase, rent, or subscribe to off-the-shelf equipment, hardware, software, and services. These are essential for the project.
- Project auditing for projects with approved funding exceeding HKD 50,000.
Normal business costs are not included in TVP. Examples of such costs include staff salaries, general office equipment, marketing and branding expenses, and financing expenses.
TVP Project Length and Funding
TVP applicants are eligible to receive up to HKD 600,000 in funding, provided on a 3:1 matching basis. Each approved project must be completed within 12 months, unless an exception has been granted. It is important to note that up to 6 projects can be approved. However, applicants are not allowed to undertake more than 1 TVP project at the same time.
TVP Application Procedures
TVP accepts applications throughout the year, and interested parties can submit their applications online. It is common for assessors to request further information to support the application. If the applicant does not provide further information within 1 month of the request, their application will be rejected.
The Processing time for the application depends on several factors. These include the number of applications received, the complexity of each one, and how detailed the information is.
TVP Application Assessment
Each eligible application is assessed on a case-by-case basis, based on its individual merits. Assessors will inspect the application to determine:
- The relevance of the proposed project to the applicant’s business.
- The reasonableness of the budget.
- The reasonableness of the implementation details.
- Whether any consultants and/or service providers engaged have an adverse record.
TVP Audit and Monitoring Requirements
Applicants must provide an audited statement of income and expenditure if they are approved for funding of HKD 50,000 or more. This is to ensure that the approved funds are used properly. The applicants must engage an independent, Hong Kong certified public accountant (CPA) in the audit of these financial statements.
The audit report must include the auditor’s opinion on whether the applicant followed the terms of their TVP funding agreement. It must also disclose any material non-compliance identified. The applicant must comply with the audit requirements. If they do not, the assessors will stop providing funding support and ask the applicant to repay all previously received funding.
To sum up, TVP provides Hong Kong’s local entities with a great chance to increase their competitiveness by utilizing technology. It is crucial to understand the requirements for eligibility, funding, applications and auditing and monitoring. This will help ensure a successful application and project outcome.
Global Core Limited is a Hong Kong TCSP-licensed firm. They can help with audit obligations and adopt technology solutions to improve your business functions. Contact Global Core Limited for more information and assistance!
TVP Audit Fees
The fees for the TVP audit vary depending on the complexity of the project and the size of the applicant’s organization. Global Core Limited can assist with the audit obligations and provide a quotation for the TVP audit fees.
Key Takeaways:
- TVP is a government programme. Its purpose is to subsidize local entities. This helps them to improve their competitiveness through the use of technology.
- Applicants must meet three criteria in order to be eligible for TVP.
- First, they must be registered in Hong Kong.
- Second, they must not be a listed company.
- Lastly, they must have substantive business operations in Hong Kong.
- TVP funding is applicable to projects that emphasize technological services and solutions that improve productivity or upgrade or transform business processes.
- TVP applicants can receive up to HKD 600,000 in funding. This is provided on a 3:1 matching basis. Each approved project must be finished within 12 months.
- TVP accepts applications throughout the year, and each application is assessed on a case-by-case basis.
- If approved for funding of HKD 50,000 or more, applicants must provide an audited statement of income and expenditure.