The inland revenue department ird of hong kong government is one of hong kong government departments which is responsible for the administration of the following hong kong ordinances on taxes and duties and the related rules and regulations. Civil aviation is a longterm growth business, with global aviation. With the current laws of hong kong available on the web, the historical laws of hong kong online database rightly. To deliver the commitment, hong kong commenced the first exchanges in september 2018. You may not be able to view some of the documents here during this period. You are required under section 511 of the inland revenue ordinance cap. Inland revenue ordinance chapter 112 inland revenue amendment no. Passing on of dividends or interest on hong kong stock prohibited 336 22. For purposes of calculating liability, the period of assessment is from april 1 to march 31 of the following year. Hong kong tax analysis beps and transfer pricing law passed hong kong s legislative council on 4 july 2018 passed the inland revenue amendment no. The inland revenue ordinance is one of hong kongs ordinances. Under section 70a of the inland revenue ordinance, a taxpayer can apply to correct.
News flash hong kong tax in detail background of the ordinance accounting treatment under international and hong kong accounting standards fair value basis effective from 1 january 2018, hong kong financial reporting standard 9 hkfrs 9 the hong kong equivalent of ifrs 9 replaced the hong kong accounting standard 39 hkas 39. Inland revenue ordinance under current provisions, when an employee is provided with a place of residence by the employer, the inland revenue department ird assesses a rental value on the place of residence that is included in the employees taxable income from a hong kong salaries tax perspective. Inland revenue ordinance gazette number version date long. This is a milestone in hong kong taxation as the beps and tp ordinance formally introduces a tp. Your attention is drawn to section 82b of the inland revenue ordinance. Were you a permanent establishment in hong kong of a nonhong kong. Automatic extension of 201819 tax payment deadlines for 3 months april 9, 2020. In other words, they comprise charities established in hong kong or hong. The commissioner of inland revenue and several other government officials are invited to attend meetings of the jlct as participating observers. Apr07 44 45 ird hong kong institute of certified public. Hong kong tax alert under the proposed unified exemption regime, funds in the form of collective investment schemes will be exempt from profits tax in hong kong in respect of their usual investment and securities trading income, provided that the transactions are carried out by a specified person or the fund itself is a qualifying fund.
If a transaction made between a hong kong taxpayer and an associated person produces offshore. Provided that the governing instrument is in order and no. The historical laws of hong kong online is a fulltext image database providing access to past revised editions of hong kong laws. Bills committee on inland revenue profits tax exemption. Salaries tax is a type of income tax that is levied in hong kong, chargeable on income from any office, employment and pension for a year of assessment arising in or derived from the territory. The hong kong government has gazetted an unprecedented tax legislative amendment the inland revenue amendment no. The tax system is distinct from that applied in the peoples republic of china. Hong kong elegislation hkel is the official database of hong kong legislation. In addition, under article 106 of the hong kong basic law, hong kong enjoys independent public finance, and no tax revenue is handed over to the central government in china.
Under section 16 of the iro, revenue expenses incurred for the production of profits, which are chargeable to tax in hong kong, would be tax deductible. Hong kong tax means tax imposed by the inland revenue ordinance iro, and hence apart from profits tax, the arms length requirement will also apply to property tax and salaries tax. The inland revenue ordinance is one of hong kong s ordinances. To complement the new ofc regime, the inland revenue amendment no. The inland revenue amendment ordinance 2018 the amendment ordinance was gazetted on 2 february 2018. However, expenditure which is capital in nature would be disallowable under section 17 of the iro. Hong kong does not levy tax on dividends, interest or capital gains earned by individuals. Hong kong, china dispute resolution profile last updated. Hong kong under sections 151b or ba of the inland revenue ordinance iro. This tax exemption will also take effect on 30 july 2018. Guide to to application for tax exemption for hong kong. Guide to application for tax exemption for hong kong charitable institutions kaizen corporate services limited. Vol 40 part 1 the hong kong tax system 69 as a compromise, the schedular system devised in 1940 was revived in 1947. The database comprises a total of seven consolidations of the laws of hong kong.
Please set the page orientation to landscape for printing of bilingual texts on a single page. Hong kong tax alert 2 conditions under which ofcs are tax exempt under the new law section 20ah of the inland revenue ordinance iro provides that where all the following conditions are satisfied, an ofc will be exempt from profits tax in hong kong in respect of certain specified types of income. Time limit for a section 70a application might not be as. Aircraft financing is an attractive business to hong kong global trend 2. One of those sources, being the one specified in item a of that subsection, is any office or employment of profit. Tracy ho is hong kong and macau tax managing partner.
Tax exemption by the hong kong inland revenue department. Hong kong tax alert 2 current tax deduction regime for specified. The technical amendments on automatic exchange of financial account information in tax matters i. An ordinance to amend the inland revenue ordinance to align tax treatment of financial. The date of issue of the estimated assessment was 20 november 2015. Historical laws of hong kong online inland revenue. Inland revenue ordinance iro would be recognized as nonpro. The new beps and transfer pricing law passed in hong kong. D386, download d386 doc english download d386 pdf english. Automatic exchange of financial account information in tax. Under section 81 of the inland revenue ordinance the ordinance, income arising in or derived from hong kong from various specified sources is chargeable to salaries tax. Expenses generally are deductible to the extent they are. Please note that system update has been scheduled to take place daily from 3. Research the key issues surrounding employee incentives law in hong kong hong kong.
To print the whole chapter in html, please click at the bottom of the toc panel and then click. Gazettal of amendment notices made under inland revenue ordinance press release april 9, 2020 relief measures. Hong kong dispute resolution profile availability and access to map sn response detailed explanation where publicly available information and guidance can be found circumstances, the competent authority of hong kong will abide by the decision or order in. It provides free online access to current and past versions of consolidated legislation dating back to 30 june 1997 and pdf copies marked verified copy have official legal status. Hong kong sar inland revenue department ird under the inland revenue ordinance iro chapter 112. Citation these rules may be cited as the inland revenue rules. In addition, sums received by a nonresident from the sale or assignment of a. Election to adopt fair value accounting for financial. For the purpose of obtaining profits tax exemption under section 88 of the inland revenue ordinance only, while the purposes under the first three heads may apply to activities carried on in any part of the world, those under head d will only be regarded as charitable if they are of benefit to the hong kong. Rule 5 amended profits of hong kong branch offices of person other than. Stamp duty chargeable where consideration in respect of immovable property consists of stock or security other than stock 340 last updated date 30.
Salaries tax is also charged on the unrealized capital gain of shares or options. 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. Tax payment deadline automatically extended by three months april 9, 2020 relief measure. Rates of depreciation 1 for the purpose of the ordinance, the expression machinery or plant. Also participating in the jlcts meetings are the hong kong association of banks, the capital markets tax committee and the federation of hong kong industries.
976 84 1152 744 1584 458 1220 1344 896 865 666 531 26 764 910 1304 378 1237 164 25 862 4 1068 493 307 876 1060 606 806 1125 385 139 673 438 532 1132 1462 633 95 393 336 682 541 123 615 960 401