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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. -
Taxation Paradigms: JOHN WEBB SUBMISSION APRIL 2009
Taxation Paradigms: What is the East Anglian Perception? JOHN WEBB A thesis submitted in partial fulfilment of the requirements of Bournemouth University for the degree of Doctor of Philosophy SUBMISSION APRIL 2009 BOURNEMOUTH UNIVERSITY What we calf t[ie beginningis oftenthe end And to makean endis to makea beginning ?fie endis wherewe start ++++++++++++++++++ Weshall not ceasefrom exploration And the of exploring end .. Wilt to arrivewhere we started +++++++++++++++++ 7.S f: Cwt(1974,208: 209) ? fie Four Quartets,Coffected Poems, 1909-1962 London: Faderand Fader 2 Acknowledgements The path of a part time PhD is long and at times painful and is only achievablewith the continued support of family, friends and colleagues. There is only one place to start and that is my immediate family; my wife, Libby, and daughter Amy, have shown incredible patienceover the last few years and deserve my earnest thanks and admiration for their fantastic support. It is far too easy to defer researchwhilst there is pressingand important targets to be met at work. My Dean of Faculty and Head of Department have shown consistent support and, in particular over the last year my workload has been managedto allow completion. Particularthanks are reservedfor the most patientand supportiveperson - my supervisor ProfessorPhilip Hardwick.I am sure I am one of many researcherswho would not have completed without Philip - thank you. ABSTRACT Ever since the Peasant'sRevolt in 1379, collection of our taxes has been unpopular. In particular when the taxes are viewed as unfair the population have reacted in significant and even violent ways. For example the Hearth Tax of 1662, Window Tax of 1747 and the Poll tax of the 1990's have experiencedpublic rejection of these levies. -
A Brief Guide to Taxes Administered by the Inland Revenue Department 2010 - 2011
INFORMATION PAMPHLET A BRIEF GUIDE TO TAXES ADMINISTERED BY THE INLAND REVENUE DEPARTMENT 2010 - 2011 INLAND REVENUE DEPARTMENT THE GOVERNMENT OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION A BRIEF GUIDE TO TAXES ADMINISTERED BY THE INLAND REVENUE DEPARTMENT This pamphlet is issued for the general information of persons unfamiliar with the tax legislation in Hong Kong. Being a brief guide, it can only cover the subject very broadly. For further details, reference may be made to our website www.ird.gov.hk or the relevant legislation. Table of Contents Pages TAXATION IN HONG KONG 1 - 29 Profits Tax 1 - 7 The Scope of the Charge 1 - 2 The Basis of Assessment 2 Non-Residents and Agents dealing 2 - 3 with Non-Residents Exemptions and Deductions 3 - 4 Tax Incentives 5 Losses 5 - 6 Depreciation Allowances 6 Books and Records 7 Salaries Tax 7 - 14 The Scope of the Charge 7 The Basis of Assessment 7 - 8 Income of Husband and Wife 8 Deductions Allowed 8 - 10 Tax Rates 11 Examples 12 - 14 Pages Property Tax 15 The Scope of the Charge 15 The Basis of Assessment 15 Properties for Owner’s Business Use 15 Allowances 16 - 19 Personal Assessment 20 - 21 Obligations of Taxpayers (Salaries, Profits & Property Tax) 22 under the IRO Obligations of Employers under the IRO 23 Completion of Tax Return 24 Charitable Donations 24 Double Taxation 24 Collection of Taxes 25 - 26 MISCELLANEOUS LEVIES 26 - 28 Stamp Duty 26 - 27 Estate Duty 27 Betting Duty 28 Registration of Businesses 28 Hotel Accommodation Tax 28 EVASION OF TAX - A CRIMINAL OFFENCE 29 Consequence of Filing Incorrect Return 29 ADVANCE RULINGS 29 FURTHER INFORMATION 29 INFORMATION PAMPHLET TAXATION IN HONG KONG The Inland Revenue Ordinance (Chapter 112) provides for the levying of three separate direct taxes for a year of assessment which ends on 31 March. -
Hong Kong Taxation
(Revised in Jan 2021) Page 1 HKICPA Aptitude Test – Syllabuses (For Reference Only) HONG KONG TAXATION Aims This paper aims at testing candidates’ general knowledge of the principles of taxation in Hong Kong and their ability to interpret and apply the taxing statutes to practical situations. Contents Competence Activity to Develop and Indicative Required Demonstrate Competence Level 1. Hong Kong taxation system Understanding of the Distinguish* between different classifications of taxes 1 operation of the Hong Kong taxation system Describe* the characteristics of the Hong Kong 1 and the chargeability to taxation system Hong Kong income tax Describe* the sources of Hong Kong tax law and how 1 the tax statutes are interpreted Describe* the functions of different units of the Inland 1 Revenue Department Describe* the appointment and powers of the 2 Commissioner of Inland Revenue Describe* the structure, powers and functions of the 2 Board of Inland Revenue Describe* the structure, powers and functions of the 2 Board of Review Describe* and distinguish the scope of charge of 2 different sources of income tax: - property tax - salaries tax - profits tax 2. Property tax Understanding of the Identify* the persons and properties chargeable to 1 computation of property property tax tax liabilities of owners of land/buildings situated in Compute* the assessable value and net assessable 3 Hong Kong value Explain* the treatment of the irrecoverable 3 consideration …/to be continued P:\E&T\1. Registration Team_HK\AT\Past Record\Syllabus -
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. -
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; -
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. -
Tax Compliance Costs of Bumiputera Small and Medium Enterprises in Northern Malaysia
IJMS 15 (1), 21-42 (2008) TAX COMPLIANCE COSTS OF BUMIPUTERA y SMALL AND MEDIUM ENTERPRISES IN NORTHERN MALAYSIA m . HAFIZAH ABDUL MANSOR Faculty of Accountancy u Universiti Teknologi MARA, Johor MUSTAFA MOHD HANEFAH d Fakulti Ekonomi dan Muamalat Universiti Sains Islam Malaysia e . ABSTRACT m This paper explores and measures the level of tax compliance costs among Bumiputera small and medium enterprises in the Northern Region of Malaysia for the year of assessment 2003. The findings revealed that the u tax compliance costs have a significant relationship with the paid up capital (size of enterprises). Overall, the tax compliance cost of Bumiputera small u and medium enterprises was RM880,110 for the assessment year 2003. Furthermore tax compliance cost of smaller Bumiputera enterprises amounted to RM413,670 while the larger Bumiputera enterprises was RM466,440. The average tax compliance cost is RM22,003. Most of the large Bumiputera s enterprises incurred more external tax compliance costs than internal compliance costs (62.34%) compared to the smaller Bumiputera enterprises (37.66%). In contrast, the smaller Bumiputera enterprises incurred more m internal tax compliance costs of about 83% as compared to external tax j compliance costs (17%). The results also indicated that small Bumiputera i enterprises have a higher percentage of tax compliance costs based on tax revenue, which is 2.57 times more compared to large Bumiputera enterprises, . which amounted to only 0.46 times. w ABSTRAK Kajian ini mengumpul dan mengukur tahap kos pematuhan dalam kalangan w Industri Kecil dan Sederhana (IKS) Bumiputera dalam kawasan utara Malaysia untuk tahun taksiran 2003. -
Hong Kong Policy Series Discussing the Potential Future Impact of the OECD’S BEPS 2.0 Initiatives on Fiscal Policy in Hong Kong
Hong Kong Policy Series Discussing the potential future impact of the OECD’s BEPS 2.0 initiatives on Fiscal Policy in Hong Kong © 2020 KPMG Tax Services Limited, a Hong Kong limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Hong Kong, China. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Dating back to 2012, the OECD Base Erosion and Profit Shifting (“BEPS”) programme has set out to counteract the perceived inefficiencies in the traditional system of international taxation, particularly when applied to multinational corporations (MNCs) operating within the digital economy. The first iteration of BEPS (now referred to as “BEPS 1.0”) produced 15 Action Points that were released during 2015 and have since been implemented to varying degrees by jurisdictions across the globe. These BEPS 1.0 Action Points focused on increasing transparency within the system of international taxation and updating the approach to transfer pricing, principally through recognition of the importance of economic substance and the appropriate reward of activities that lead to value creation. In Hong Kong these principles, in particular a formal transfer pricing policy, have been implemented in The OECD’s measures 2018 through new legislation locally referred to as the “BEPS Bill”. designed to address global tax inefficiencies “ In the meantime, the international tax landscape has continued to evolve. In May with respect to the 2019, the OECD/G20 Inclusive Framework on BEPS agreed a Programme of digitalized economy are Work for Addressing the Tax Challenges of the Digitalization of the Economy. -
The Proposed Relaxation of Deduction of Foreign Taxes for Profits Tax Purpose
News Flash Hong Kong Tax The proposed relaxation of deduction of foreign taxes for profits tax purpose March 19, 2021 Issue 2 In brief The Inland Revenue (Amendment) (Miscellaneous Provisions) Bill 20211 (the Bill) was gazetted on March 19, 2021. The Bill, among other things, seeks to amend the Inland Revenue Ordinance (IRO) to enhance the deduction of foreign taxes for profits tax purposes as a means for relieving double taxation in Hong Kong. Upon enactment of the Bill, the revised rules on foreign tax deduction will take effect from the year of assessment 2021/22. This News Flash focuses on the proposed revised rules for foreign tax deduction in Hong Kong. For other matters addressed in the Bill, namely the tax treatment for amalgamation of companies under the court-free procedures, the tax treatment for transfer or succession of specified assets under certain circumstances and the statutory framework for furnishing of tax returns (including e-filing of profits tax returns), please refer to our upcoming Hong Kong Tax News Flashes, April 2021, Issue 3 and 4. In detail Foreign tax deduction rules in Hong Kong The existing rules and practice The Inland Revenue Department (IRD) revised the Departmental Interpretation and Practice Notes No. 28 – Deduction of Foreign Taxes (revised DIPN 28) in July 20192. Based on the revised DIPN 28, the following rules apply for deduction of foreign taxes for profits tax purposes: • foreign taxes paid on profits or income, including withholding taxes (WHT) on royalties, licensing fees and service fees, are not deductible under section 16(1) of the IRO; • foreign taxes paid (by either a Hong Kong or non-Hong Kong resident person) on specified interest, gains and profits3 are deductible under section 16(1)(c) of the IRO, provided that they are paid in a jurisdiction which does not have a double taxation agreement (DTA) in force with Hong Kong (i.e.