Category Taxation in Hong Kong

Hong Kong Needs to Drop Maritime Taxes

May 24, 2018 Taxation in Hong Kong

maritime industries Hong KongHONG KONG – Hong Kong should drop taxes for the maritime industry to boost up the flagging sector.

On May 21st Financial Services Development Council of Hong Kong released a new report with a suggestion of how to help the city develop a maritime financing and leasing industry.

Among the suggestion was a call for some significant overhauls for the tax system in place for the industry.

The Council called on the local government to enact tax concessions for maritime and ship leasing management and maritime and shipping-related supporting service activities.

However, instead of just calling for tax breaks, the Council encouraged the government to conduct full consultations with the industry when planning its tax review package.

Further, the report called for the negotiations and launch of ne...

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Top Taxpayers Pay a Third of Hong Kong’s Taxes

April 26, 2018 Taxation in Hong Kong

top taxpayers in Hong KongHONG KONG – A third of Hong Kong’s personal income tax comes from the richest people 1.5 percent of taxpayers, and some politicians want them to pay even more.

New information released by the Financial Services and the Treasury Bureau in Hong Kong on April 24th indicates that the top 1.5 highest earning taxpayers in the city paid more than a third of the personal income tax collected in 2017.

In the 2016-2017 year, a total of HKD 63.6 billion in personal income tax was collected in Hong Kong.

The top 1.5 percent of taxpayers directly contributed HKD 22.8 billion of the total.

Of the top 1.5 percent of taxpayers, half had salaries of between HKD 2 million and HKD 5 million, though approximately 2 700 of the richest taxpayers had salaries exceeding HLD 10 million.

Personal income tax in Hon...

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Hong Kong Hands Tax Breaks SMEs and Start-ups

August 19, 2017 Taxation in Hong Kong

Hong Kong business taxHONG KONG – Start-ups in Hong Kong will soon enjoy some tax reprieve, as the government looks to drop taxes for small business.

Late this week the Financial Secretary of Hong Kong Paul Chan Mo-po announced that the government was mulling a new tax measure to alleviate the tax burden faced by small and medium sized enterprises in the city.

The new system would be the first major reform in two decades to the taxation of business in the city.

Under the newly proposed rules, businesses in Hong Kong would see a tax rate of 10 percent on the first HKD 2 million earned each year.

The rate of taxation on any subsequent incomes would rise to the standard current rate of 16.5 percent.

It is expected that the decreased tax rate would result in a drop in the collection of tax revenues of approximate...

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Hong Kong Drops EV Tax Break, Tesla Sales Stop

July 11, 2017 Taxation in Hong Kong

Teslas in Hong KongHONG KONG – Sales of Teslas in Hing Kong have stopped, as a recent tax change has nearly doubled the price of the car.

New information indicates that the sale of electric vehicles in Hong Kong came to a grinding halt after the government dropped tax incentives for buying the environmentally-friendly cars.

The tax liability on purchasing a new car in Hong Kong can sometimes be as high as the value of the car itself.

The government had previously offered to drop the new-car tax on electric vehicles entirely, leading to Teslas becoming one of the most popular among consumers.

However, in an effort to crack down on increasing traffic congestion, the government has capped the tax break on Teslas at a maximum of HKD 97 500.

The announcement by the government that the tax break would be dropped ...

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Taxes Could Fix Inequality in Hong Kong

June 12, 2017 Taxation in Hong Kong

Hong KongHONG KONG – The who may be the next Welfare Minister of Hong Kong is calling for taxes to fund anti-inequality measures in the city.

Hong Kong should considering levying a capital gains tax or amending the rates charged on personal incomes, according to a statement made by Law Chi-kwong, a prominent academic in Hong Kong.

While giving a televised interview over the weekend, Law Chi-kwong, who is expected to be appointed the next Welfare Minister of Hong Kong, said that income inequality in Hong Kong is rising.

The creeping inequality is most apparent among the elderly, many of whom are on the verge of poverty.

The academic suggested that a capital gains tax could be used to reduce the level of income inequality in the country.

He added that the standard 15 percent rate of tax on income co...

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