Country Tax Profile: Hong Kong (SAR)
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INLAND REVENUE BOARD of REVIEW DECISIONS Case No. D5
INLAND REVENUE BOARD OF REVIEW DECISIONS Case No. D5/93 Salaries tax – whether certain travel and entertainment expenses could be deducted from the assessable income of the taxpayer. Panel: William Turnbull (chairman), Philip Fu Yuen Ko and Richard Lee. Date of hearing: 3 March 1993. Date of decision: 27 April 1993. The taxpayer was employed as an assistant sales manager and claimed as a deduction from his assessable income certain expenses being entertainment and travelling. In support of his claim he provided certain vouchers issued by various restaurants on which he had written the names of customers and a schedule of travelling expenses. The employer of the taxpayer paid to the taxpayer a travelling allowance which the taxpayer claimed should not be subject to salaries tax. Held: The entire travel allowance was subject to assessment to tax. The taxpayer could claim a deduction of the actual amount of the travel expenses which he had incurred. With regard to the entertainment expenses the Board was not satisfied that the taxpayer had incurred the entertainment expenses and noted that he had not claimed reimbursement of the same from his employer even though he was entitled so to do. Appeal dismissed. Cases referred to: D17/93, IRBRD, vol 1, 113 CIR v Humphrey 1 HKTC 451 Lomax v Newton 34 TC 558 D36/90, IRBRD, vol 5, 295 May Chan for the Commissioner of Inland Revenue. Taxpayer in person. Decision: INLAND REVENUE BOARD OF REVIEW DECISIONS This is an appeal by a salaries taxpayer against a determination of the Deputy Commissioner for Inland Revenue which refused to allow the Taxpayer to deduct certain travel and entertainment expenses from his assessable income. -
Appendix I Tax Summary
Appendix I Tax Summary ppendix I provides a summary of the tax system Each tax is described in terms of the relevant leg- a jp—4as of July 1, 1997. The tables start with a de- islative act, the definition of the tax base, the main scription of taxes levied by the central government exemptions and deductions that are applicable and followed by taxes levied by local governments. the tax rates. 71 Tax Summary as of July I, 1997 Tax Base Exemptions and Deductions Rates A. Central Government 1. Taxes on income and profits I.I Taxes on corporations Law No. 157/1981 amended by Law An annual tax on accrued net taxable Deductions allowed cover all business Profits above LE 18,000 a year (subject to No. 187/1993. profits earned in Egypt by both foreign expenses, including actual rent or the above deductions, exemptions, and so and domestic corporations (including estimated rental value of premises, wage forth) are taxed as follows: limited partnerships, joint stock and bonuses to be statutorily granted to companies, and public sector enterprises) workers, social security contributions on Industrial and export engaged in manufacturing, commerce, their behalf, savings fund and pension profits 32 percent banking, mining, real estate brokerage, fund contributions (up to 20 percent of Profits from oil exploration commercial leasing activities, and so the wage bill), inventory costs, interest, production 40.55 percent forth. Tax year is calendar year unless royalties, remunerations to Board of Other profits 40 percent stated otherwise in company's articles. Directors and allowances to major shareholders to attend general meetings, In addition, a development duty of Taxable profits include: subscriptions to governments, 2 percent is applied to all profits above contributions to charitable and social LE 18,000 annually. -
(Amendment) (Tax Concessions for Carried Interest) Ordinance 2021 2021 年第 9 號條例 Ord
《2021 年稅務 ( 修訂 ) ( 附帶權益的稅務寬減 ) 條例》 Inland Revenue (Amendment) (Tax Concessions for Carried Interest) Ordinance 2021 2021 年第 9 號條例 Ord. No. 9 of 2021 A182 A183 《2021 年稅務 ( 修訂 ) ( 附帶權益的稅務寬減 ) 條例》 Inland Revenue (Amendment) (Tax Concessions for Carried Interest) Ordinance 2021 目錄 Contents 條次 頁次 Section Page 1. 簡稱 ........................................................................................ A186 1. Short title ................................................................................ A187 2. 修訂《稅務條例》 ..................................................................... A186 2. Inland Revenue Ordinance amended ...................................... A187 3. 修訂第 2 條 ( 釋義 ) ................................................................ A188 3. Section 2 amended (interpretation) ......................................... A189 4. 修訂第 4 條 ( 公事保密 ) ......................................................... A188 4. Section 4 amended (official secrecy) ....................................... A189 5. 修訂經《2020 年稅務 ( 修訂 ) ( 與保險有關的業務的利 5. Section 19CA (as amended by section 7 of the Inland 得稅寬減) 條 例》(2020 年第15 號 ) 第 7 條修訂的第 Revenue (Amendment) (Profits Tax Concessions for 19CA 條 ( 根據第 19CAB 及 19CAC 條對未吸納虧損的 Insurance-related Businesses) Ordinance 2020 (15 of 處理:釋義 ) ........................................................................... A188 2020)) amended (treatment of unabsorbed losses under 6. 修訂第 20AN 條 ( 某些基金的某些利潤獲豁免繳付利得 sections 19CAB and 19CAC: interpretation) .......................... A189 稅 ) ......................................................................................... -
Guide to Shipping Register and Shipping Tax Regime in Hong Kong Contents
Guide to Shipping Register and Shipping Tax Regime in Hong Kong Contents The Hong Kong Shipping Register 1 Taxation of Shipping Profits in Hong Kong 8 Schedule 12 The Hong Kong Shipping Register Until 3 December 1990, the United Kingdom Merchant Shipping Acts (the “Acts”) (except for the Merchant Shipping Act 1988) applied to registration of ships and to mortgages of ships in Hong Kong. A ship registered at the Port of Hong Kong was, therefore, a British ship. Hong Kong reverted to Chinese sovereignty on 1 July 1997 and became a Special Administrative Region of the People’s Republic of China. Section VIII of Annex I to the Sino- British Joint Declaration which relates to the transfer of sovereignty states that: “The Hong Kong Special Administrative Region shall maintain Hong Kong’s previous systems of shipping management and shipping regulation, including the system for regulating conditions of seamen. The specific functions and responsibilities of the Hong Kong Special Administrative Region Government in the field of shipping shall be defined by the Hong Kong Special Administrative Region Government on its own. Private shipping businesses and shipping-related businesses and private container terminals in Hong Kong may continue to operate freely. The Hong Kong Special Administrative Region shall be authorised by the Central People’s Government to continue to maintain a shipping register and issue related certificates under its own legislation in the name of ‘Hong Kong, China’.” The Hong Kong Government appointed a Steering Committee in 1987 to advise the Government on the establishment of an independent shipping registry. The result was enacted as the Merchant Shipping (Registration) Ordinance (Cap 415) (the “Ordinance”), which came into effect on 3 December 1990. -
Inland Revenue (Amendment) (Miscellaneous Provisions) Ordinance 2021 Contents
《2021 年稅務 ( 修訂 ) ( 雜項條文 ) 條例》 Inland Revenue (Amendment) (Miscellaneous Provisions) Ordinance 2021 2021 年第 18 號條例 Ord. No. 18 of 2021 A2100 A2101 《2021 年稅務 ( 修訂 ) ( 雜項條文 ) 條例》 Inland Revenue (Amendment) (Miscellaneous Provisions) Ordinance 2021 目錄 Contents 條次 頁次 Section Page 第 1 部 Part 1 導言 Preliminary 1. 簡稱 ...................................................................................... A2108 1. Short title .............................................................................. A2109 2. 修訂《稅務條例》 ................................................................... A2110 2. Inland Revenue Ordinance amended .................................... A2111 第 2 部 Part 2 關乎合資格合併的修訂 Amendments relating to Qualifying Amalgamations 3. 加入第 6C 部 ........................................................................ A2112 3. Part 6C added ....................................................................... A2113 第 6C 部 Part 6C 合資格合併 Qualifying Amalgamations 40AE. 釋義 .................................................................... A2112 40AE. Interpretation ...................................................... A2113 40AF. 第 6C 部的適用範圍 ........................................... A2116 40AF. Application of Part 6C ....................................... A2117 40AG. 參與合併公司視為已停止經營某行業、專業 40AG. Amalgamating company treated as having 或業務 ................................................................. A2116 ceased to carry on trade, profession or 40AH. 參與合併公司的暫繳利得稅 .............................. A2116 business .............................................................. -
Asia Pacific Tax Weekly Newsletter
KPMG Asia Pacific Tax Weekly KPMG Asia Pacific Tax Centre | 8 April 2021 Asia Pacific Tax Developments Australia Guidance on claiming temporary full expensing and loss carryback The Australian Taxation Office issued guidance for businesses claiming temporary full expensing and loss carryback in their 2020-21 tax returns. New measures concerning casual employment; action steps for employers New measures in Australia amend existing employment legislation with regard to “casual employment.” No further extension of financial reporting deadlines (COVID-19) The Australian Securities and Investments Commission announced that it is not currently intending to extend the deadline for filing financial reports for balance dates after 7 January 2021. R&D tax incentive (Full Federal Court) The Full Federal Court in a case concerning the interpretation of section 8AAZN of the Taxation Administration Act 1953 (Cth) (TAA 1953) as to what constitutes an administrative overpayment held for the government in a case concerning a claim for research and development tax incentive. © 2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. 1 Synthesised text of income tax treaty with Indonesia The Australian Taxation Office released synthesised text of the multilateral instrument and Australia’s income tax treaty with Indonesia. Hong Kong (SAR), China Hong Kong extends profits tax concession for certain insurance businesses The enhanced tax concession came into effect on 19 March 2021, providing a concessionary tax rate of 8.25% on income for certain insurance-related businesses conducting business in Hong Kong provided certain thresholds are met. -
Hong Kong Budget Summary 2005
Tricor, a member of the Bank of East Asia Group, is a leading professional provider of April 2005 Vol. 2, No.2 integrated business, corporate and investor services in Hong Kong, Greater China and South East Asia. Our services include Accounting, Company Formation, Corporate Governance & Company Secretarial, Executive Search & Selection, Initial Public Offerings & Share Registration, Payroll, Fund and Trust Administration. Tricor has built its reputation and professional expertise through the acquisition of the corporate service businesses of three of the “Big 4” international accounting firms: Deloitte Touche Tohmatsu and Ernst & Young in Hong Kong, and PricewaterhouseCoopers in Hong Kong and Singapore. Our mission is to be The Business Enabler of choice. Principal Tricor subsidiaries Abacus Share Registrars Limited Barbinder & Co Pte Ltd Evatthouse Corporate Services Pte Ltd Outsource Centre Pte Ltd Secretaries Limited Standard Registrars Limited Member of the BEA Group Strath Corporate Services Limited Tengis Limited Tricor Executive Resources Limited Please visit our website at www.tricor.com.hk Tricor Investor Services Limited © 2005 Tricor Services Limited. All Rights Reserved. E-mail: [email protected] MemberMember ofof thethe BEABEA GroupGroup Beijing Hong Kong Macau Shanghai Singapore Tortola (BVI) Tricor Consultancy Tricor Services Limited Tengis Business Services Shanghai Tricor Tengis Tricor Singapore Pte Tricor International (Beijing) Limited 28/F, BEA Harbour View Limited Consultancy Limited Limited Trustee Limited Suite 1808-1809 Centre 17 Andar E Room 3109-17 #11-00 PWC Building, East Asia Chambers, P.O. China World Tower 1 56 Gloucester Road Praia Grande Commercial 31/F Shanghai Central 8 Cross Street, Box 901 China World Trade Centre Wanchai, Hong Kong Centre Plaza Singapore 048424 Road Town, Tortola 1 Jian Guo Men Wai No. -
Departmental Interpretation and Practice Notes No. 43 (Revised)
Inland Revenue Department The Government of the Hong Kong Special Administrative Region of the People's Republic of China DEPARTMENTAL INTERPRETATION AND PRACTICE NOTES NO. 43 (REVISED) PROFITS TAX PROFITS TAX EXEMPTION FOR OFFSHORE FUNDS These notes are issued for the information of taxpayers and their tax representatives. They contain the Department’s interpretation and practices in relation to the laws as it stood at the date of publication. Taxpayers are reminded that their right of objection against the assessment and their right of appeal to the Commissioner, the Board of Review or the Court are not affected by the application of these notes. These notes replace those issued in February 2010. WONG Kuen-fai Commissioner of Inland Revenue May 2016 Our web site : www.ird.gov.hk DEPARTMENTAL INTERPRETATION AND PRACTICE NOTES No. 43 (Revised) CONTENT Paragraph Introduction 1 Background Before the 2006 Ordinance 4 The 2006 Ordinance 6 The 2015 Ordinance 7 Resident person / Non-resident person 8 Individuals 9 Non-individual entities 12 Central management and control 13 Split year residence 21 The Exemption Provisions Exemption criteria 22 Scope of Exemption 23 Specified Transactions 24 Transaction in securities 26 Transaction in futures contracts 29 Transaction in foreign exchange contracts 32 Transaction consisting in the making of a deposit other than by 33 way of a money-lending business Transaction in foreign currencies 34 Transaction in exchange-traded commodities 35 Incidental transactions 36 Specified person 39 Loss from exempt -
Inland Revenue Department 60Th Anniversary
Miscellaneous Inland Revenue Department 60th Anniversary IRD celebrates its 60th anniversary in 2007–08. Let us go into the time tunnel to revisit the history of the Department in the past 60 years: Commissioners of Inland Revenue Name Duration Mr E W PUDNEY 1.1.1947 – 1.2.1951 Mr W F WATSON, O.B.E. 2.2.1951 – 26.5.1957 Mr W J DRYSDALE 1.4.1958 – 15.7.1963 Mr A D DUFFY, O.B.E. 16.7.1963 – 11.5.1972 Mr F E RAINBOW, O.B.E. 12.5.1972 – 26.1.1975 Mr R V GIDDY, C.B.E. (1979) 27.1.1975 – 19.9.1979 Mr V A LADD, C.B.E. 20.9.1979 – 31.7.1985 Mr Anthony AU-YEUNG FU, O.B.E. (1989), C.B.E. (1997), J.P. 1.8.1985 – 23.4.1996 Mr WONG Ho-sang, J.P. 24.4.1996 – 18.8.1999 Mrs LAU MAK Yee-ming, Alice, J.P. Since 1.3.2001 Revenue Collection and Cost of Collection IRD Revenue Collection ($m) 250,000 200,697 200,000 150,000 137,515 100,000 50,000 34,349 14 185 616 4,372 0 1947–48 1957–58 1967–68 1977–78 1987–88 1997–98 2007–08 Costs per 100 Dollars of Revenue $3.61 $1.97 $1.55 $1.24 $1.17 $0.81 $0.58 Inland Revenue Department Annual Report 2007–08 47 Inland Revenue Department 60th Anniversary IRD Departmental Grades Number and Ratio of Male and Female Staff 1,600 1,400 1,200 373:796 1,000 245:716 800 348:375 284:394 373:262 600 400 248:84 255 200 138 104:27 119:2 68:35 54:1 48:2 50 39:1 27:0 23:1 15:1 18:0 10:1 1:0 0 A B C A B C A B C A B C A B C A B C A B C 1947–48 1957–58 1967–68 1977–78 1987–88 1997–98 2007–08 A : Assessor Grade B : Inspector Grade C : Taxation Officer Grade Sex Ratio (Male : Female) Non departmental grades are not included ¢ Male ¢ Female -
Departmental Interpretation and Practice Notes No. 61 Profits Tax
Inland Revenue Department The Government of the Hong Kong Special Administrative Region of the People's Republic of China DEPARTMENTAL INTERPRETATION AND PRACTICE NOTES NO. 61 PROFITS TAX PROFITS TAX EXEMPTION FOR FUNDS These notes are issued for the information of taxpayers and their tax representatives. They contain the Department’s interpretation and practices in relation to the laws as it stood at the date of publication. Taxpayers are reminded that their right of objection against the assessment and their right of appeal to the Commissioner, the Board of Review or the Court are not affected by the application of these notes. WONG Kuen-fai Commissioner of Inland Revenue June 2020 Our web site : www.ird.gov.hk DEPARTMENTAL INTERPRETATION AND PRACTICE NOTES No. 61 CONTENT Paragraph Introduction Public and private funds 1 Fund domiciliation 4 Transfers of interests in funds 6 Foreign Account Tax Compliance Act 7 Common Reporting Standard 11 Transfer pricing 14 Tax Regimes Relating to Funds Fund regime (on or after 1 April 2019) 16 Offshore fund regime (up to 31 March 2019) 19 Offshore private equity fund regime (up to 31 March 2019) 23 Open-ended fund company regime (from 30 July 2018 to 31 March 2019) 24 Co-investment partner funds under ITVF Scheme 27 Fund Regime Legal framework 29 Commencement date 32 What Fund Means Meaning of fund – Encompassed concepts 35 – Arrangement in respect of property 36 – Managed as a whole requirement 38 – Pooling requirement 42 – Separate pools of assets and different classes of interests 46 – No day-to-day -
Hong Kong: Changes to Double Tax Relief for Salaries
Insights from Global Mobility Hong Kong: Changes to double tax relief for salaries tax August 7, 2018 In brief The lengthy tax legislation that implements a transfer pricing regime and key actions arising from the Organisation for Economic Co-operation and Development's (OECD) Base Erosion and Profit Shifting (BEPS) project in Hong Kong was gazetted as Inland Revenue (Amendment) (No.6) Ordinance 2018 on July 13, 2018. Although the new tax legislation mostly covers the issues on BEPS, it also introduces various changes to salaries tax, in particular, the income exclusion claim under section 8(1A)(c) of the Inland Revenue Ordinance (IRO) as a means for double tax relief. In detail available where foreign tax has claim from two years to six Changes to income exclusion been paid in a non-DTA years after the end of the claim jurisdiction for services relevant year of assessment; rendered in that jurisdiction. Under the new legislation, a This change applies from year of imposes an obligation on Hong Kong salaries taxpayer assessment 2018/19. salaries taxpayers to notify who is also subject to foreign tax the Commissioner of Inland for services rendered in a Additional changes Revenue in writing of any foreign jurisdiction having a The new legislation also subsequent adjustment to double tax agreement (DTA) introduces the following with Hong Kong (DTA the amount of foreign tax changes that may impact paid or payable that results jurisdiction) may only claim a salaries taxpayers. The new in the double tax relief tax credit for the foreign tax law: paid under section 50 of the previously granted by Hong IRO and the relevant DTA as a requires salaries taxpayers to Kong to become excessive relief for double taxation. -
Asia Tax Bulletin Spring 2021 in This Editioneurope BRUSSELS We Are Pleased to Present the Springlondon 2021 Edition Ofdü SSELDORF PARIS Our Firm’S Asia Tax Bulletin
Asia Tax Bulletin Spring 2021 In This EditionEUROPE BRUSSELS We are pleased to present the SpringLONDON 2021 edition ofDÜ SSELDORF PARIS our firm’s Asia Tax Bulletin. FRANKFURT ORK BEIJING Dear Reader, GTON DChow to compute eligible IP (royalty) income for the reduced income tax rate; and Thailand’s As the world struggles to recover from the TOKYO CHARLOTTE introduction of VAT on overseas digital services pandemic, business continues regardless and consumed in Thailand with effect from SHANGHAI the tax authorities appear to have little 1 September 2021. trouble keeping up, at least judging from DUBAI HONG KONG developments over the past three months. This edition also contains some interesting HANOI case law in various Asian countries. We This edition of the Asia Tax Bulletin covers the hope you enjoy reading it. highlights, inter alia including the tax proposals HO CHI MINH CITY in the 2021 budgets in Hong Kong, India and Stay safe and don’t give in to the Singapore; China’s draft stamp duty law and current challenges. simplified APA procedure; the long-awaited SINGAPORE carried interest concession proposed by the Hong Kong tax authority; India’s launch of the With kind regards, Faceless Penalty Scheme and an e-portal to Pieter de Ridder report tax evasion; the IndonesianBRASÍLI tax A* authorities’ clarification on the offshore tax VITÓRIA* exemption treatment of expats living in * Indonesia – as well as the dividend withholding RIO DE JANEIRO tax exemption criteria for Indonesian SÃO PAULO* companies; Korea’s tax law changes for 2021;