Hong Kong Reports Tax Revenues Growths
November 2, 2011 Taxation in Hong Kong
HONG KONG – Hong Kong has seen a bumper year for tax collections, with annual tax revenues up by 16.7 percent.
On November 2nd the Inland Revenue Department (IRD) of Hong Kong released its Annual Report for the 2010 – 2011 fiscal year, showing a significant improvement in tax revenues compared to the previous year.
According to the report, Hong Kong’s cumulative tax collections for the year reached HKD 209 billion. Corporate tax collections provided the largest contribution to the government’s budget, reaching HKD 93.2 billion. Personal income tax collections were at their highest ever recorded level, at HKD 44.3 billion. Stamp duties brought in an additional HKD 51 billion in revenues.
The cumulative tax collections for the year were 16.7 percent higher than last year. Corporate tax collections were up 22 percent over last year, and personal income tax grew by 7 percent. Collections of stamp duties also grew by 20 percent.
Commenting on the tax revenue results for the year, the Commissioner of the IRD Chu Yam-Yuen said that the Hong Kong economy has seen a full-fledged upturn, and has overcome the global recession triggered by the financial crisis. Overall, he regarded the final tax revenue results as most encouraging.
The Commissioner added that the IRD is seeing a distinct increase in the complexity of tax assessments for large and multinational enterprises. He said that with the increasing levels of corporate globalization, the IRD is required to analyze much greater amounts of data. In response to the complexities, throughout the year the Department has been actively providing more training opportunities and tools to tax officials.
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