LCQ7: Measures to promote sports sponsorship

Legislative Council Inquiry and Government Expenditure

On 20 May 2026, the Information Services Department released a written reply from the Secretary for Culture, Sports and Tourism, Miss Rosanna Law, to a question by Hon Andrew Fan in the Legislative Council regarding measures to promote sports sponsorship. The Government has been implementing a five-pronged approach to sports development, with the estimated expenditure on sports development for 2026-27 standing at about $8.1 billion. This figure represents an increase of nearly 70 per cent compared to the expenditure of about $4.8 billion recorded ten years ago.

Classification and Statistics of Sports Organisations

The Government confirmed that national sports associations ("NSAs"), sports organisations ("SOs"), and community sports clubs ("CSCs") under the subvention of the Leisure and Cultural Services Department are all non-profit-making organisations. Statistics for the past three years indicate NSAs remained constant at 62 across 2023-24, 2024-25, and 2025-26. SOs fluctuated between 41 and 45, specifically 43 in 2023-24, 41 in 2024-25, and 45 in 2025-26. CSCs stood at 445 in 2023-24 and 450 in both 2024-25 and 2025-26. The Government does not maintain statistics on the breakdown of these entities by categories such as enterprises, social enterprises, non-profit-making organisations and charitable institutions, nor on the number of sports clubs and professional sports organisations in Hong Kong.

Tax Deduction Framework and Policy Position

Under the Inland Revenue Ordinance (Cap. 112) ("IRO"), all outgoings and expenses incurred by taxpayers in the production of chargeable profits are allowed as deductions. If a commercial organisation sponsors a sports event to promote its business, the sponsorship may be treated as marketing expenses and allowable as deductions. For taxpayers making aggregate donations not less than $100 to any tax-exempt charitable institution under section 88 of the IRO, the donations may be deducted from assessable profits, net assessable income, or total income, with the total deduction allowable in any year not exceeding 35 per cent of the donor's assessable profits or income. The IRD does not maintain statistics on tax deductions for sports sponsorship, and given Hong Kong's current low tax rates, the Government will not at present consider providing tax deductions or additional tax concessions for expenses on sports sponsorship.

Economic Contribution and Development Measures

The Census and Statistics Department ("C&SD") has been publishing statistics on the economic contribution of sports and related activities in Hong Kong every year since 2019. According to the latest figures released by the C&SD in 2025, the value added of Hong Kong's sports and related activities at basic prices in 2023 was around $44 billion, representing an increase of 15.1 per cent compared with 2022, and accounting for 1.5 per cent of the Gross Domestic Product. In terms of employment, more than 80 000 persons were employed in sports and related activities in 2023, representing an increase of 12.8 per cent compared to 2022. The Government is actively implementing measures such as promoting community-wide participation, attracting world-class sports events, boosting 'sports + mega events', and making full use of the Kai Tak Sports Park to develop a host-city economy.

Funding Mechanisms for Major Sports Events

Regarding major sports events supported under the 'M' Mark System, the Government established the system to allocate funding through matching sponsorship and direct grants to support organisers in hosting large-scale events. In 2024-25, a total of 30 major sports events were awarded 'M' Mark status, involving a total of about $402 million in commercial sponsorship and about $284 million in matching fund. Apart from the 'M' Mark System, the Government also provides direct and matching grants through the Arts and Sport Development Fund ("ASDF") (Sports Portion) to support NSAs; in 2024-25, a total of 120 events were supported by the ASDF (Sports Portion), involving a total of about $13 million in commercial sponsorships and about $12 million in matching grants. The Government will review each event application according to established mechanisms, including criteria such as financial viability (including sponsorship from private enterprises), economic impact, and community appeal.