Category Taxation in Hong Kong

Hong Kong Banks Divulge Client Data

September 15, 2018 Taxation in Hong Kong

Hong KongHONG KONG – The majority of Hong Kong financial institutions have divulged detailed data about their international clients for an international data swap.

New media reports in Hong Kong indicate that approximately 1 700 financial institutions have submitted details about their clients for international information exchanges.

The information exchanges are part of the mandatory international program called the Automatic Exchange of Financial Account Information in Tax Matters (AEOI).

The AEOI initiative has participating members in 149 countries around the world, and involves the annual exchange of information about individuals with financial accounts held in jurisdictions other than their main jurisdiction.

The exchanged information includes balances, pay-outs, dividends, and other data wh...

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Wealthiest Hong Kong Investors Skip Property Tax

August 17, 2018 Taxation in Hong Kong

Hong Kong housingHONG KONG – Shell companies are helping Hong Kong’s wealthiest people pay less to purchase houses and property.

Hong Kong has some of the most expensive property and housing in the world, and recent media reports are indicating that some wealthy investors and buyers are managing to bypass the taxes aimed at reducing house prices.

Under the standard rules applicable for most locals, property purchases carry with them a stamp duty of 15 per cent, or an even higher 30 per cent duty of the purchaser is not a local.

However, some wealthy locals have been reducing the applicable rate of stamp duty to as low as 0.2 per cent.

The reduced rate applies if the property in question is held in a company, and the buyer purchases the company and not the underlying asset.

Share sales are eligible for ...

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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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