rocket
Introducing the Orbitax International Tax Platform, a revolutionary suite of integrated tax solutions including research, compliance, calculations, entity management and charting. Find out more.
News Share

The Tax Hub

Daily Tax Newsletter

Hong Kong

Responsive image

Hong Kong Approves Inland Revenue (Amendment) (No.7) Bill 2018

The Hong Kong Inland Revenue Department has announced that the Inland Revenue (Amendment) (No. 7) Bill 2018 was approved by the Legislative Council on 20 February 2019.  The legislation:

  • Aligns the tax treatment of financial instruments with their accounting treatment;
  • Allows the deduction of interest expenses payable to overseas export credit agencies;
  • Refines the provisions that implement the arrangement for automatic exchange of financial account information in tax matters ("AEOI");
  • Avoids potential double non-taxation of income of visiting teachers and researchers; and
  • Revises the meaning of the sibling relationship.

The measures of the legislation will generally apply from the date it is published in the Official Gazette, although the measure regarding AEOI apply from 1 January 2020.

---

The Secretary for Financial Services and the Treasury, Mr James Lau, welcomed the passage of the Inland Revenue (Amendment) (No. 7) Bill 2018 by the Legislative Council today (February 20).

The new Ordinance gives effect to five amendments to the Inland Revenue Ordinance (IRO). These include aligning the tax treatment of financial instruments with their accounting treatment; allowing taxpayers the deduction of interest expenses payable to overseas export credit agencies; refining the provisions that implement the arrangement for automatic exchange of financial account information in tax matters (AEOI); avoiding double non-taxation of income of visiting teachers and researchers; and revising the meaning of the sibling relationship.

Mr Lau said, "Allowing taxpayers to elect to have their profits derived from financial instruments taxed on the same basis as that of their accounting treatment will facilitate their preparation of tax returns. Interest expenses payable to overseas export credit agencies are also made deductible to help foster trading activities between Hong Kong and other places. |P "The Government has agreed in principle with the Mainland for the introduction of a teachers and researchers article in the comprehensive avoidance of double taxation arrangement with the Mainland as soon as possible so as to relieve the tax burden for Hong Kong teachers and researchers working there. The amendment to the Ordinance will help avoid double non-taxation of income of visiting teachers and researchers," Mr Lau added. |P The Ordinance also includes refinements to the current AEOI regime to clarify the meanings of certain concepts while removing five categories of institutions from the list of non-reporting financial institutions. In addition, it revises the meaning of "brother and sister

Powerful Tax Tools

NEW

FX Rates

Global FX Rates including Tax Year Average FX Rates and Spot Rates for all Reporting Currencies.

NEW

Corporate Tax Rates

Corporate tax rates, surtaxes, and effective tax rates for the current year, as well as historical rates and approved future rates.

NEW

Country Analysis

Detailed tax guidance for companies doing business in over 100 countries, including summaries and snapshots of key tax facts and issues.

NEW

Cross Border Tax Calculator

Calculate total tax costs and benefits of a cross border transaction including withholding tax, participation exemption and foreign tax credit rules.

NEW

Cross Border Tax Rates

Provides Domestic, treaty and EU cross border tax rates for over 5,000 country combinations for 9 different payment streams.

NEW

OECD BEPS Project

Complete overview of the OECD BEPS Project, including daily BEPS news, country adoption of BEPS measures, and an overview of the 15 BEPS Actions.

NEW

Tax Calendar

Customizable calendar tool that tracks corporate income tax, value added tax and transfer pricing obligations by country or entity.

NEW

Tax Forms

English translations of key tax forms for over 80 countries, including tax return forms, treaty benefit forms, withholding tax forms, and more.

NEW

Worldwide Tax Treaties

Repository including thousands of tax treaties (in English), OECD, UN and US Models, relevant EU Directives, Technical Explanations, and more.

NEW

Worldwide Tax Planner

Calculates the worldwide tax cost of what-if scenarios based on legal entity structure, taxable income, and cross border transactions.

NEW

Certified Rates Report

Customizable Certified Rates Report providing updated corporate and withholding tax rates at the end of each month for over 100 countries.

NEW

Withholding Tax Minimizer

Enables quick calculation of tax costs and benefits of cross border transactions considering all possible transaction combinations and optimal routes.

NEW

VAT Rates

Provides value added tax (VAT) rates, goods and services tax (GST) rates and other indirect tax rates for over 100 countries.

NEW

NOL Calculator

Country specific calculator to determine how net operating losses can be utilized in carryback and carryforward years.

NEW

Transfer Pricing Calculator

Calculates TP ratios under various TP methods and calculates the difference between target ratios and actual ratios.

NEW

Individual Income Tax Rates

Individual tax rates for over 100 countries.

Play of the Day

Translate Documents

English translations of key tax forms for over 80 countries, including tax return forms, treaty benefit forms, withholding tax forms, and more.

We’re here to help

We’re here to answer any questions you have about the Orbitax products and services.

Send us a message

Who’s behind Orbitax?

We’re committed to providing high value, low cost tax research and management solutions.

Learn More