The Taxation of the Digital Economy

Introduction Many of us have heard or might even have read about the taxation of the digital economy. This not only because the Organisation for Economic Co-Operation and Development (‘OECD’) and the European Union (‘EU’) both have issued reports on this matter, but also because it has become a ‘hot topic’ within the society itself […]

Potential Risks of Erroneous Exchange of Tax Information

Introduction Due to global implementation of common reporting standard (CRS)/automatic exchange of information (“AEOI”), financial institutions (“FIs”) are required to conduct due diligence on account holders to ascertain their tax residency, and accordingly whether certain information of the financial accounts of the account holders is required to be exchanged to foreign tax jurisdiction(s). The due […]

Individual Tax Implications on Share-based Benefits in Hong Kong

Introduction Employers that would like their employees to stay with the company for a long time and/or want their employees to achieve certain performance targets, may offer those employees (conditional) shared-based benefits, such as share options and share awards. One has to be well aware that such share-based benefits are generally regarded by the Hong […]

Will your investments benefit from Mainland China’s new rule on “beneficial ownership”?

Introduction In order to improve the implementation of double tax treaties between Mainland China and other tax jurisdictions, the State Administration of Taxation of Mainland China (“SAT”) released in February 2018 a Public Notice [2018] No. 9 (“Public Notice 9”), providing further and clearer guidelines/rules in assessing the beneficial ownership (“BO”) status for the purpose […]

Tax Disputes with the Hong Kong Tax Department

Introduction The tax system in Hong Kong is simple but not straight forward. In Hong Kong where the territorial source system is adopted, one of the most controversial tax issues is whether or not an income is arising in or derived from Hong Kong (i.e. sourced in Hong Kong) and hence subject to Hong Kong […]

Expatriates Being Assigned to Hong Kong – Any Possible Tax Mitigation?

Introduction Hong Kong is an international business hub from where various multinational corporations operate their companies, branches or other forms of establishments. Such operational activity often also involves the employment of management personnel and/or experts from abroad, being assigned to Hong Kong, for several months or years. One of their major concerns is usually their […]

Hong Kong Profits Tax Returns & Employer’s Returns for the Year 2017/18 Issued

Introduction This April 2018, most companies/organisations in Hong Kong will receive from the Hong Kong Inland Revenue Department (“IRD”) the annual Profits Tax Returns (Form BIR 51) and Employer’s Returns for the year of assessment 2017/18. (A) Profits Tax Returns Profits Tax Returns are issued to companies/organisations for reporting, amongst others, their assessable profits/adjusted loss […]

Hong Kong 2018-2019 Budget

Introduction On 28 February 2018, the Financial Secretary of Hong Kong announced the Budget for the fiscal year 2018-19. It is estimated in the Budget that there will be a surplus of HKD 138 billion in the fiscal year 2017-18, which is HKD 121.7 billion more than the original estimation of HKD 16.3 billion made […]

New Statutory Requirements for Certain Companies/Businesses in Hong Kong

New Statutory Requirements for Certain Companies/Businesses in Hong Kong Introduction As from 1 March 2018, it will be statutorily required for certain prescribed companies to maintain a so-called Significant Controllers Register (“SCR”). In addition, a person who carries on or wishes to carry on a trust or company service business in Hong Kong (“HK”) will […]

Hong Kong Tax Implications on Investment Income

Introduction Hong Kong is one of the most attractive places in the world for investments in securities, such as shares, bonds, funds, futures and options. As a result, typical questions that may arise are related to i) whether the income/gains derived from those security investments, such as dividends, interests and disposal gains, are subject to […]

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