For shipping, Hong Kong offers profits tax exemption for international shipping operations and has entered into double taxation relief arrangements covering Percentage share to Hong Kong Ports container throughput in 2015: Kwai Tsing Container Terminals: 78 Other port facilities: 22. Hong Kong Steps Forward Tax Relief. On February 25, Hong Kongs Financial Secretary John C Tsang announced the Hong Kong 2015-16 Annual Budget and released a slew of tax relief policies to boost growth in Hong Kong. Hong Kong.David Harrowven explains pensions tax relief under the 2015 Finance Act. Studying this technical article and answering the related questions can count towards your verifiable CPD if you are following the unit route to CPD and the content is relevant to your learning and development needs. All businesses engaged in activities in Hong Kong, whether or not incorporated locally, must obtain a Business Registration Certificate from the Hong Kong tax authorities (the Inland Revenue Department (IRD)) within one month of commencing business. Here you can learn more about the territorial concept of taxation, how income earned outside Hong Kong is taxed, the exemptions you could be eligible for and the types of documents you should keep to support your claim for exemption or tax relief.2015/16 (1 April 2015 to 31 March 2016). 1 The tax system in Hong Kong. 2 Administrative procedures under the Inland Revenue Ordinance. Updated the tax rates for 2017/18 and onwards and the tax relief for 2015/16 and 2016/17. The Hong Kong Government announced that the DTA with the United Arab Emirates entered into force on December 18, 2015.Hong Kongs New Budget Contains Tax Relief Measures. Many countries which tax their residents on a worldwide basis also provide their residents operating businesses in Hong Kong with unilateral tax credit relief for any Hong Kong tax paid on income / profit derived from Hong Kong. Analysis of tax system of Hong Kong, corporation tax, withholding tax, taxation of dividends, group relief, vat, taxation of interest and royalties.Hong Kong - Greenland: Tax Information Exchange Agreement Enters Into Force.
A Hong Kong perspective on key international tax developments in the Asia Pacific region February 2015. Practical difficulties in obtaining tax treaty relief what does this mean for passive income companies (i.e. holding companies, IP companies etc.) Bill No. 6 also include other proposed changes relating to Hong Kong Salaries Tax, in particular, double tax relief under Section 8(1A)(c) of the Inland Revenue Ordinance (IRO). Under the proposed amendment to section 8(1A)(c) Hong Kong does not levy withholding tax on dividend distributions paid to either residents or non-residents. Ireland.For dividends, relief from federal, cantonal and communal income tax is granted (Participation Reduction) in case: dividends derived from a. Highlights and relief measures. The Hong Kong GDP for 2014 was 2.3 whilst the forecast for 2015 is 1-3.Reduce profits tax for 2014-15 by 75 per cent, subject to a ceiling of 20,000.
The reduction will be reflected in the final tax payable for 2014-15. Hong Kong introduces a legislative bill to grant tax deductions for distributions on RCSs and stamp duty relief for transfers of RCSs. The Inland Revenue (Amendment) (No. 4) Bill 2015 (the Bill) was introduced to the Legislative Council on 4 December 2015. Direct Income Tax in Hong Kong: Profits, Salaries, Property Tax.Salaries Tax of Hong Kong (for Employee) EXPLAINED.August 2015 (1). This chapter aims to provide investors with key concepts and practical explanations on Hong Kong taxation, and guidance on taking advantage of the taxation policy for individuals and enterprises internal and external investments, in order to formulate a reasonable tax framework. Under Article 108 of the Basic Law of Hong Kong, the taxation system in Hong Kong is independent of, and different from, the taxation system in mainland China. In addition, under Article 106 of the Hong Kong Basic Law, Hong Kong enjoys independent public finance The Tax Samaritan country guide to US expat tax in Hong Kong is intended to provide a general review of the tax environment of Hong Kong and how that will impact your U.S. expatriate tax return as a U.S. Expat In Hong Kong. 13 July 2015 on business, hong kong, taxes.In the UK, youd have to manually apply for these tax relief, it is not done automatically. Hong Kongs budget 2014-2015, presented on February 26th 2014, has tax proposals that are expected to have an effect on the financial services sector.The budgets also have proposals on one-off relief measures that primarily affect individual taxpayers. Salaries Tax. Charged on Hong Kong sourced remuneration inclusive of certain benefits in kind.Other forms of relief include: 60 days exemption rule for both Hong Kong and foreign employment Days-in-days-out calculation rule for foreign employment.2015-16 HK. Hong Kong salaries tax may be reduced if your employer treats a proportion of your pay as a rental reimbursement, rather than as salary.Is the expatriate still required to file tax returns on worldwide income? Is there double taxation relief? This agreement comes shortly after Hong Kong concluded a DTA with Romania in November 2015, which is also on the Belt and Road route, and brings the number of DTAs in Hong Kong to 34.Withholding tax relief and exchange of information. No group tax loss relief and tax loss carry-back arrangements are available. 4. Hong Kong Tax Guide 2017 / 18.Subsequently, Inland Revenue (Amendment) (No. 2) Ordinance 2015 was enacted to extend the profits tax exemption to cover offshore private equity funds subject to meeting certain This DTA clearly sets out the allocation of taxing rights between the two jurisdictions and the relief on tax rates on different types of passive income.Hong Kong issued an Order to ratify the DTA signed with Mainland China on October 2, 2015. Double Taxation Relief Hong Kong has signed the following international double tax agreementsNotification Country Signed Date Subject to completion of ratification procedures by both governments South Korea 8 July 2014 Romania 18 November 2015 Russia 18 January 2016 Latvia 13 April 2016. Hong Kongs tax laws do not provide for loss relief to be given between members of groups of companies.Effective from 13 February 2015, transfer of units or shares of all Hong Kong listed exchange traded funds is exempt from stamp duty. -Individuals who cease Hong Kong employment/secondment/assignment during the year 2016/17 -Individuals who are eligible to claim tax exemption or tax relief pursuant to double tax treaties Other taxes Property tax, salaries tax, stamp duty, etc. Crowe Horwath International Investing in Asia Pacific 2015 HONG KONG. 9.6. Group taxation policies There is no group relief in Hong Kong.
Tax reporting is on individual company basis. 7. Tax incentives Investment income derived by genuine Lowtax Global Tax Business Portal | Headline Tax Rates Around The World. N.p 2015. Web. 6 Oct.If all the companys income is from outside Hong Kong, you may claim offshore exemption, relieving your firm of Hong Kong tax. The Inland Revenue (Amendment) (No. 2) Bill 2015, which will implement the concessionary salaries and profits tax revenue measures proposed in Hong Kongs 2015-16 Budget, was gazetted on April 17. The Budgets tax relief policies include an increase to the basic and additional child allowances under Moving your Company s operations and executives from Hong Kong to Singapore Pros and Cons Shanker Iyer Sanjay Iyer 9 February 2015 SINGAPORE HONGKONG 20 YEARS IN PRACTICE AGENDA 1. General Background 2.Profits tax. One-off relief measures. HK Eco Hong Kong Business Hong Kong Offshore Bank Introduction Audit Accounting.Hong Kong tax system is quite simple, Hong Kong ranks No 1 in The Heritage Foundation 2015 for economic business freedom. Hong Kong Tax alert - 10 December 2015 (2015 Issue No. 21) Basel III banking compliant regulatory capital securities Legislative bill to grant tax deductions for distributions on regulatory capital securities and stamp duty relief for transfers of RCSs introduced. Tax costs No principal private residence relief (exempting a capital gain on disposal of the primary residence) is available. Assumes the tax rates in Hong Kong remain unchanged as of those for the tax assessment year of 2015/16. Under the DTAs, relief from income tax is only available to Hong Kong resident individuals who are not at the same time residents of the contracting countries.Methods of relieving double taxation in Hong Kong. Conversely, temporary income tax and VAT exemptions are also provided for the trading gains of Chinese investors arising from Hong Kong Stock Exchange-listed shares, when transacted through Shenzhen-Hong Kong Stock Connect. A new set of measures for claiming benefits under the Tax Treaty between Hong Kong and China will enter into effect starting with November 1 2015.The new procedural changes bring both certain relief and new obligations for Hong Kong tax residents. Hong Kongs government announced deeper tax cuts and handouts aimed at easing the financial burden on residents.Stimulus steps include lower personal and business taxes and higher child allowances. Hong Kong Tax alert - 10 December 2015 (2015 Issue No. 21) Basel III banking compliant regulatory capital securities Legislative bill to grant tax deductions for distributions on regulatory capital securities and stamp duty relief for transfers of RCSs introduced. Income tax rates 2015 income.The relief operates by excluding (from salaries tax) the income derived by the employee for services rendered outside Hong Kong if the employee is chargeable to tax in the other jurisdiction in which the employee renders services. Salaries tax Introduction. Charged on Hong Kong sourced remuneration inclusive of certain benefits in kind. Housing benefit is one source of relief, and is subject to preferential tax treatment, generally at(2) the progressive rates applying to net chargeable income. 2015/16. 2016/17. First HK40,000 at. There is no group tax relief in Hong Kong.12. On 18 November 2015, the Hong Kong Government signed an agreement with Romania for the avoidance of double taxation and the prevention of fiscal evasion in respect of taxes on income. If your income is taxed outside Hong Kong, you should read more about Double Taxation Relief here to see if you are liable for double taxation.Read More: Everything You Need to Know About Filing Income Tax 2015. 02 марта 2015, 11:51.This weeks regulatory update covers the tax relief measures in Hong Kong, adjusted minimum wage levels in Guangdong province and preferential tax policies for private nursing homes. One-off relief measures such as reductions in profits tax and salaries tax payable for 2015/16, increases in personal allowances, and waivers of rates and fees continue to be a recurring theme.Read a February 2016 report prepared by the KPMG member firm in Hong Kong . However, the total amount of tax assessed was 2.3 less after implementing the salaries tax relief measures in the 2015-16 Budget (Figure 7).Double taxation arises where the same item of income or profit of a taxpayer is subject to tax in Hong Kong as well as in another tax jurisdiction. A Tax Residency Certificate is a proof of the resident status of a Hong Kong resident for the purposes of claiming tax benefits under the Comprehensive Double Taxation ArrangementsThe decision as to whether relief from foreign taxes can be granted is, ultimately, to be made by the treaty partner. As at December 2015, Hong Kongs legislature is debating a bill to update the copyright laws in line with the internet age.Tax treaties Hong Kong is part of an extensive network of Double Taxation Relief and Exchange of Information Arrangements, covering 58 countries / territories currently. In addition, a salaries tax rebate similar to that for 2014/15 is proposed for 2015/16 as a one-off relief measure. Similar to last year, companies which have settled the 2015/16 salaries tax liabilities for their former assignees/expatriates who have already departed from Hong Kong should ensure the