An accounting industry group has called for tax concessions to boost Hong Kong's headquarters economy while allowing mainland talent to buy flats using renminbi.

The calls were made on Wednesday as the Hong Kong Institute of Certified Public Accountants (HKIPCA) expressed confidence in the city's economic outlook.

The HKIPCA's president, Stephen Law, said it estimated that Hong Kong would see a HK$1.4 billion deficit for the 2025-26 fiscal year, with fiscal reserves standing at more than HK$650 billion by the end of March.

"If you look at the debt to GDP level, we are about nine percent, and we predict that it will not go over 16 percent. And if you look at this percentage and compare it to other countries, such as Singapore, which is at over 160 percent, Japan — 250 percent, US — over 100 percent, we are at a very healthy financial status,” he said.

Law said the improvement was due to higher trading volume that led to more stamp duty revenues, while government savings also helped.

In announcing its proposal for the upcoming budget, the group said the government could offer a half-rate profits tax concession for qualifying regional headquarters in Hong Kong for a fixed period of five years.

An additional two years of tax exemptions should also be given to mainland enterprises that aim to "go global" through Hong Kong, it proposed.

Meanwhile, the HKIPCA urged the government to further attract and retain mainland and overseas talent.

It proposed a "Property Connect" scheme which would allow recently-arrived talent from the mainland to purchase first-hand residential units in Hong Kong using renminbi.

“Our aim is not to affect the property market. Our aim is for the mainlanders coming to Hong Kong [to settle] down,” Law said.

“Once they have a property, it's very likely that they will stay here in the longer term. At the moment, they just don't have the currency to buy the property.”

The HKIPCA also proposed extending the statutory maternity leave to 16 weeks and paternity leave to 10 days, while encouraging the elderly to return to the workforce.

To ease residents’ financial burden, the government could offer a one-off 100 percent reduction on salaries and profits tax with a cap of HK$5,000, the institute said.

It also called on the government to promote green transport and high-end eco-tourism.