Hong Kong Budget Summary 2005
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Third Quarter Economic Report 2003
THIRD QUARTER ECONOMIC REPORT 2003 ECONOMIC ANALYSIS DIVISION FINANCIAL SERVICES AND THE TREASURY BUREAU GOVERNMENT OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION November 2003 CONTENTS Paragraphs CHAPTER 1: OVERALL VIEW Overall situation 1.1 - 1.9 The external sector 1.10 - 1.18 Domestic demand 1.19 - 1.23 The Government account 1.24 - 1.26 The property market 1.27 - 1.30 The labour market 1.31 - 1.34 Prices 1.35 - 1.37 The financial sector 1.38 - 1.42 CHAPTER 2: THE EXTERNAL SECTOR Major external influences 2.1 - 2.6 Overall visible and invisible trade situation 2.7 - 2.15 Visible trade Total exports of goods 2.16 - 2.29 Re-exports 2.30 - 2.33 Domestic exports 2.34 - 2.35 Outward processing trade 2.36 - 2.39 Imports of goods 2.40 - 2.41 Retained imports 2.42 - 2.45 Invisible trade Exports of services 2.46 - 2.49 Imports of services 2.50 - 2.53 Overall balance of payments 2.54 - 2.56 CHAPTER 3: THE DOMESTIC ECONOMY Net output or value added by major economic sector 3.1 - 3.2 Local manufacturing output 3.3 - 3.4 Service sector receipts 3.5 - 3.6 Property 3.7 - 3.16 Building and construction 3.17 - 3.23 Land 3.24 - 3.27 Electricity and gas 3.28 - 3.29 Internal transport 3.30 - 3.31 External transport 3.32 - 3.35 Tourism 3.36 - 3.41 Telecommunications 3.42 - 3.43 CHAPTER 4: THE FINANCIAL SECTOR Overall financial market situation 4.1 Exchange rates 4.2 - 4.4 Interest rates 4.5 - 4.7 Deposits and money supply 4.8 - 4.12 Hong Kong dollar external claims and liabilities of authorized 4.13 - 4.14 institutions Loans and advances 4.15 - 4.19 Banks -
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. -
An Analysis on the Latest Developments and Comparative Advantages of Offshore RMB Centers
ECONOMIC REVIEW(A Monthly Issue) March, 2014 Economics & Strategic Planning Department http://www.bochk.com An Analysis on the Latest Developments and Comparative Advantages of Offshore RMB Centers Liu Hong, Economist Recently, London and the Chinese government have signed a Memorandum of Understanding on RMB clearing and settlement, and offshore RMB businesses in Europe are growing steadily. According to the latest Global Financial Centers Index (GFCI) compiled by Z/Yen, a well-known London based Group, London, Hong Kong and Singapore were ranked as the second, third, and fourth global financial centers respectively. As top-tier international global financial centers, Hong Kong, London and Singapore have similar advantages in developing offshore RMB businesses, such as favorable time-zones, robust legal systems, free capital flow, relatively low tax rates and English language backgrounds etc. Meanwhile, these three financial centers also have their unique comparative advantages in developing offshore RMB businesses. I. Comparative advantages of Hong Kong Hong Kong is the largest offshore RMB center. It provides wholesale business functions thanks to the following comparative advantages. 1. Geographical location advantage with close proximity to onshore RMB market. Geographically, Hong Kong is near the mainland market and next to Guangdong province. As a result, Hong Kong has a first-mover advantage in business cooperation with the mainland. Firstly, there is close bilateral trade between Hong Kong and the mainland. According to statistics from the General Administration of Customs of the People's Republic of China, total bilateral trade amounted to USD 401 billion between Hong Kong and the mainland in 2013. Secondly, Hong Kong is the greatest source of the mainland's foreign direct investment and vice versa. -
Visitor Arrivals 1
Monthly Tourism Highlights –January to August 2019 Visitor Arrivals 1. Visitor Arrivals ➢ Visitor arrivals of 3.62 million was recorded in Aug 2019 with 6.5% year-on-year growth. This has significantly shrunk compared with the 16.3% growth in Jul and is possibly because of the protest in Hong Kong which reduced tourists’ intention in coming to Macao; Overnight Stay Visitors recorded a 5.7% year-on-year drop to 1.70 million arrivals. ➢ Average length of stay of visitors was 1.2 day in Aug, which was the same as last year; overnight stay visitors was up by 0.1 day to 2.3 days. ➢ Visitor arrivals of 27.44 million was recorded during Jan to Aug 2019, registering an increase of 18.0% compared with the same period of 2018. ➢ Among those, although overnight stay visitors increased by 5.7% to 12.90 million, same day visitors grew largely by 31.6% which led the proportion of overnight stay visitors dropped by 5.5 percentage point over year to 47.0%. ➢ For Jan to Aug, the average length of stay of visitors stood at 1.2 day and overnight visitors stayed 2.2 days, both was the same as 2018. % 2019 % 2019 Aug Visitor Arrivals to Change Jan to Aug Change Macao Jan to Aug 2019 Visitor Arrivals 3,623,116 +6.5% 27,437,982 +18.0% Same Day Visitor 1,926,319 +20.2% 14,540,874 +31.6% Overnight Ratio % (53.2%) (53.0%) Same Day Stay Visitor Visitor Overnight Stay Visitor 1,696,797 -5.7% 12,897,108 +5.7% 47.0% 53.0% Ratio % (46.8%) (47.0%) 2. -
CHAPTER 1 Inland Revenue Department Administration of Hotel
CHAPTER 1 Inland Revenue Department Administration of hotel accommodation tax Audit Commission Hong Kong 28 March 2007 This audit review was carried out under a set of guidelines tabled in the Provisional Legislative Council by the Chairman of the Public Accounts Committee on 11 February 1998. The guidelines were agreed between the Public Accounts Committee and the Director of Audit and accepted by the Government of the Hong Kong Special Administrative Region. Report No. 48 of the Director of Audit contains 8 Chapters which are available on our website at http://www.aud.gov.hk. Audit Commission 26th floor, Immigration Tower 7 Gloucester Road Wan Chai Hong Kong Tel : (852) 2829 4210 Fax : (852) 2824 2087 E-mail : [email protected] ADMINISTRATION OF HOTEL ACCOMMODATION TAX Contents Paragraph PART 1: INTRODUCTION 1.1 Hotel accommodation tax 1.2 – 1.3 Role of the Inland Revenue Department 1.4 Types of establishments 1.5 Audit review 1.6 – 1.7 General response from the Administration 1.8 – 1.9 Acknowledgement 1.10 PART 2: CHARGING OF HOTEL ACCOMMODATION TAX 2.1 Legislation 2.2 – 2.5 Establishments providing long-term accommodation 2.6 – 2.12 Audit observations 2.13 – 2.17 Audit recommendations 2.18 Response from the Administration 2.19 Accommodation charges 2.20 Audit observations 2.21 – 2.27 Audit recommendations 2.28 Response from the Administration 2.29 Tax implications of exemption provisions 2.30 Audit observations 2.31 – 2.33 Audit recommendations 2.34 Response from the Administration 2.35 — i — Paragraph PART 3: COLLECTION OF HOTEL -
RMB on HK.Pdf (1.154Mb)
SAE./No.83/July 2017 Studies in Applied Economics AN ANALYSIS OF THE IMPACT OF RMB DEPRECIATION ON HONG KONG Richard (Ziyuan) Li Johns Hopkins Institute for Applied Economics, Global Health, and Study of Business Enterprise An Analysis of the Impact of RMB Depreciation on Hong Kong By Richard (Ziyuan) Li Copyright 2017 by Richard Li. This work may be reproduced provided that no fee is charged and the original source is properly cited. About the Series The Studies in Applied Economics series is under the general direction of Professor Steve H. Hanke, Co-Director of The Johns Hopkins Institute for Applied Economics, Global Health and the Study of Business Enterprise ([email protected]). The authors are mainly students at The Johns Hopkins University in Baltimore. Some performed their work as summer research assistants at the Institute. This working paper is one in a series on currency boards. The currency board working papers will fill gaps in the history, statistics, and scholarship of the subject. About the Author Richard Li ([email protected]) is a graduate student at The Johns Hopkins University in Baltimore, pursuing a master’s degree in Financial Mathematics. He wrote this paper as a research assistant at the Institute for Applied Economics, Global Health, and the Study of Business Enterprise in Spring 2017. He will graduate in December 2017. Abstract Hong Kong is one of the main economies operating a currency board system today. With its currency fixed to the U.S. dollar, the system has functioned successfully since it was restarted in 1983. The last time it faced severe challenges was during the East Asian financial crisis of 1997-98. -
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; -
Annual Economic Report: Hong Kong 2009
Consulate General of Switzerland in Hong Kong 512.0-ROH/CHW Hong Kong, 30th April 2010 Annual Economic report: Hong Kong 2009 Summary The Hong Kong economy exhibited resilience in countering the global financial crisis and started to improve in the second quarter of 2009. The momentum picked up further and its GDP recorded a positive growth in the fourth quarter. For 2009 as a whole, the economy contracted by 2.7%, the first annual recession since 1998. On the contrary to the original estimate of the HKSAR Government, it turned out to achieve a budgetary surplus about US$ 3.3 billion in the fiscal year of 20091, thanks to high land premiums and a huge revenue from stamp duties in both the stock and property markets. The economic integration with Mainland China is going on. There will be more regional co-operation between Guangdong and Hong Kong in the fields of financial services, infrastructure and environment, as reinforced by the recent Framework Agreement on Hong Kong and Guangdong Co-operation. On the merchandise trade with the world, Hong Kong recorded a growth of 34% and 26% in imports and exports respectively in the first quarter of 2010. The notable growth was partly due to the low comparison base when the merchandise trade of Hong Kong was severely hit in the first quarter of 2009. That said, there are some positive signs in consumer confidence and business sentiment in line with a gradual fall of unemployment rate. Swiss exports of goods and services to Hong Kong are expected to benefit from an overall improvement of the local economy, an increasing demand of green technology and automation technology in industries in the Pearl River Delta as well as the robust consumption power of tourists from Mainland China. -
Tax and Investment Facts a Glimpse at Taxation and Investment in Hong Kong WTS Consulting (Hong Kong) Limited Hong Kong
Hong Kong Tax and Investment Facts A Glimpse at Taxation and Investment in Hong Kong WTS consulting (Hong Kong) Limited Hong Kong WTS Alliance, to which WTS WTS Hong Kong, part of WTS Hong Kong belongs, is a global which is headquartered network of selected consulting in Germany, offers a firms represented in more comprehensive service than 100 countries worldwide. portfolio to both national and Within our service portfolio we international corporations are focused on tax, legal and and individuals with regard to consulting. Our clients include their investments in Greater multinational groups, national China and across Asia. We and international medium- advise on a range of topics, sized companies, non-profit including Hong Kong, Chinese, organizations and private European and International tax clients. law, accounting, market entry and transfer pricing. Strategic Contact in Hong Kong planning for expatriate Ms. Connie Lee assignment programmes is a Head of Tax further key area of expertise. [email protected] +852 2380 2003 WTS Hong Kong provides value added services in the following areas: → International tax → Corporate tax → Tax controversy services → Transfer pricing → Mergers & acquisitions → Global expatriate services → International project management → Accounting and bookkeeping → Human resources advisory 2 Tax and Investment Facts | Hong Kong Table of Contents 1 Types of Business Structure / Legal Forms of Companies 4 2 Corporate Taxation 5 3 Double Taxation Agreements / Tax Information Exchange Agreements 12 4 Transfer Pricing 15 5 Anti-avoidance Measures 16 6 Taxation of Individuals / Social Security Contributions 17 7 Indirect Taxes 22 8 Inheritance and Gift Tax 25 9 Wealth Tax 25 Tax and Investment Facts | Hong Kong 3 1 Types of Business Structure / Legal Forms of Companies The most common legal forms of business in Hong Kong are the limited liability company, partnership, sole proprietorship, branch office of parent company and representative office. -
INLAND REVENUE BOARD of REVIEW DECISIONS Case No
INLAND REVENUE BOARD OF REVIEW DECISIONS Case No. D24/97 Salaries tax – sum payable as per contract on termination of employment – amount of sum payable based on compromise between the parties – whether assessable to salaries tax. Panel: Audrey Eu Yuet Mee SC (chairman), Michael Choy Wah Ying and John Lee Luen Wai. Date of hearing: 8 April 1997. Date of decision: 15 April 1997. Appeal dismissed. Cases referred to: Mairs v Haughey [1993] 3 WLR 393 Hochstrasser v Mayes [1960] AC 376 D13/89, IRBRD, vol 4, 242 D19/92, IRBRD, vol 7, 156 D43/93, IRBRD, vol 8, 323 D90/96, IRBRD, vol 11, 727 D24/88, IRBRD, vol 3, 289 D15/93, IRBRD, vol 8, 350 D32/95, IRBRD, vol 10, 195 David Hardy Glynn v CIR 3 HKTC 245 Yim Kwok Cheong for the Commissioner of Inland Revenue. Jefferson Vanderwolk of Messrs Deloitte Touche Tohmatsu for the taxpayer. Decision: THE APPEAL 1. The Taxpayer objects to the salaries tax assessment for the year of assessment 1993/94. He claims that s um of $1,923,809 (‘the Relevant Sum’) paid to him on the termination of his employment should not be assessable to salaries tax. THE FACTS INLAND REVENUE BOARD OF REVIEW DECISIONS 2. The relevant facts are not in dispute and we find the facts in this section proved. 3. The Taxpayer was initially employed by Bank A, Hong Kong Branch. Clause 3.1 of the terms of employment, a copy of which was provided to us by the Taxpayer, stipulated that Bank A could terminate the employment by giving to the employee one calendar month’s notice in writing or on payment of a sum equal to the amount of basic salary which would have accrued to the employee during the period of notice required.