On 3 June 2016, Hong Kong published the Inland Revenue (Amendment) (No. 2) Ordinance 2016 in the Official Gazette. According to the press release from the Inland Revenue Department, the Ordinance enables, under specified conditions, the deduction of interest payable on money borrowed by a corporation carrying on in Hong Kong an intra-group financing business. It further provides for a concessionary profits tax rate at 8.25% for qualifying corporate treasury centers. The changes apply from 1 April 2016.
Additional details will be published once the related departmental interpretation and practice notes are issued to explain the operation of the tax measures.
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