Hong Kong: Advance Ruling for source of profits relating to branch’s transactions
An “advance ruling” is issued by the Inland Revenue Department addressing the locality of profits for Hong Kong tax purposes. Generally, there is no interpretive guideline regarding the source principle in the Hong Kong’s law. Therefore, the
See MoreHong Kong emphasis to conclude ASEAN FTA
Hong Kong is planning to give emphasis on finalizing the proposed Hong Kong-Association of Southeast Asian Nations (ASEAN) free trade agreement (FTA) as quickly as possible. The Secretary for Commerce and Economic Development Gregory So announced
See MoreHong Kong: FATCA Agreement Nears Conclusion
Hong Kong and the United States are nearing a conclusion to negotiations for an inter-governmental agreement (IGA) to pave the way for Hong Kong financial institutions to comply with the Foreign Account Tax Compliance Act (FATCA). The FATCA is due
See MoreHong Kong Ensures Low-Tax Policies
The Financial Secretary has said that spending will be limited to 20 percent of the GDP so that the low tax regime may be retained without problems in balancing the budget. The Working Group on Long Term Fiscal Planning which was set up in June 2013
See MoreHong Kong Reviews Efficacy of New Stamp Duties
The Legislative Council in Hong Kong recently requested information to enable it to assess the effect of tax changes that were brought in to ensure that the housing market did not overheat. These measures included the Special Stamp Duty (SSD)
See MoreUS and Hong Kong- tax information exchange agreement (TIEA)
On April 25 2014 Hong Kong gazetted the tax information exchange agreement (TIEA) with the United States. The agreement will take effect after the relevant legislative procedures have been completed. The OECD has been encouraging the conclusion of
See MoreHong Kong: Raises air passenger security charge
Hong Kong’s Airport Authority has raised the passenger security charge with effect from June 1 2014. This charge is paid by each passenger departing from Hong Kong International Airport and is to be increased by 36 percent. This passenger security
See MoreHong Kong and Malaysia Discuss Islamic Finance
The Hong Kong Monetary Authority (HKMA) and Bank Negara Malaysia (BNM) took part in a meeting on 14 April 2014 to discuss Islamic finance. They are aiming to increase interest in the financial instrument known as sukuk as a viable financing and
See MoreHong Kong – Urged To Retain Prudent Fiscal Policies
The IMF has expressed support for the work of Hong Kong’s Working Group on Long-Term Fiscal Planning, which is looking at the fiscal strategy in the long term. The Group is investigating the question of balancing government revenues and spending
See MoreChina: 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
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