China: Shanghai and Hong Kong Agree Financial Services Co-operation
The fourth Hong Kong-Shanghai Financial Co-operation Working Meeting brought together representatives of governments, stock exchanges and financial regulators to discuss issues surrounding financial services and products. Representatives from
See MoreHong Kong – 2013-14 Tax Returns Issued
On April 1 2014 the Hong Kong Inland Revenue Department issued the 2013/14 tax returns in respect of profits tax, property tax and tax reporting by employers. In the Budget for this year Hong Kong has announced a one-off reduction of 75% on profits
See MoreHong Kong signs tax information exchange agreement with the US
Hong Kong signed a tax information exchange agreement (TIEA) with the US on 25 March 2014. This agreement will strengthen the ability of the two jurisdictions to take action in respect of the enforcement of their taxes. Tax information exchange
See MoreHong Kong DTAs with Qatar, Canada, Kuwait, Jersey, and Mexico
The double taxation agreements (DTAs) that Hong Kong has signed with Qatar, Canada, Kuwait, Jersey, and Mexico are to take effect in Hong Kong from April 1,
See MoreHong Kong considers how to maintain Low-Tax Regime
According to a recently published report by the Working Group on Long-Term Fiscal Planning the government will need to find additional tax revenue at some point in the future to close a gap in the finances. The government has emphasized that fiscal
See MoreHong Kong and USA working for FATCA IGA
Hong Kong and the United States signed a tax information exchange agreement (TIEA) on March 25 2014. This will provide the legal framework within which an intergovernmental agreement (IGA) can be signed to enable the transfer of information in
See MoreHong Kong – Tax Authority Responds To Fair Value Accounting Case
Following the judgment of Hong Kong's Court of Final Appeal in Nice Cheer Investment Limited v Commissioner of Inland Revenue (CIR), FACV 23/2012, the Inland Revenue Department has been requested, and has agreed, to accept financial statements
See MoreHong Kong: Working Group suggests Fiscal Policies are Unsustainable
The Working Group on Long-Term Fiscal Planning has suggested that a future structural fiscal gap will require the Government to find additional tax revenue. Hong Kong's overall fiscal position in the short- to medium-term remains healthy. In the
See MoreHong Kong – Tax provisions in budget 2014-2015
The Hong Kong budget for 2014-2015 contains tax proposals affecting the financial services sector. Among these are measures that would: Propose a review of the requirements under the Inland Revenue Ordinance for interest deductions in the
See MoreHong Kong – Stamp duty change for residential property transactions
Hong Kong’s Legislative Council has passed a bill to amend the stamp duty imposed on residential property transactions. The measures are effective retroactively from 27 October 2012. The new measure includes: Enhanced special stamp duty rates;
See MoreHong Kong- Budget considers Fiscal Sustainability Over Longer-Term
Competitiveness was the theme of Hong Kong’s 2014/15 budget, but a significant portion of the budget speech looked at the maintenance of Hong Kong's healthy public finances in the face of increased spending on education, social welfare and
See MoreHong Kong: Negotiations for DTA with Romania
On 29 January 2014, the Romanian government authorized the start of negotiations for the conclusion of a Double Tax Agreement (DTA) between Hong Kong and
See MoreHong Kong: Tax concession for captive insurance companies
On 8 January 2014 legislation was introduced into the Legislative Council to provide a profits tax concession to captive insurance companies for profits from their business of insurance of offshore risks. These profits are to be chargeable to
See MoreHong Kong: Stamp Duty Increases Affect Property Sales
Increases in the rates of existing ad valorem stamp duty for both residential and non-residential property transactions appear to have cooled the real estate market. The Government increased such taxes from February 23, 2013 for that goal and it
See MoreHong Kong: Court of Final Appeal decision on unrealized revaluation gains
Hong Kong’s Court of Final Appeal (CFA) ruled that year-end unrealized revaluation gains on listed securities held for sale were not taxable in Hong Kong. In a case called Nice Cheer Investment Limited (NCIL), the CFA rejected the CIR’s
See MoreHong Kong: Lower Tax for Captive Insurers
The amended Inland Revenue bill (No.3) 2013 has been gazetted by the Hong Kong Government, aiming to reduce by half the profits tax on captive insurers, and to increase the deduction ceiling for retirement scheme contributions by employees or
See MoreHong Kong: Ensure Support for SMEs
In response to a question in the Legislative Council, Hong Kong’s Secretary for Commerce and Economic Development confirmed that the Government will arrange continued support for small and medium-sized enterprises (SMEs). The numbers of SMEs and
See MoreHong Kong: Exchange of information for tax purposes
Hong Kong is broadly compliant in its implementation of the international standards of transparency and exchange of information for tax purposes, a review of OECD’s global forum was announced at its meeting in Jakarta on November 2013. However,
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