Category Taxation in Hong Kong

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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Hong Kong Drops Tax Breaks on EVs

February 23, 2017 Taxation in Hong Kong

EV Tax BreaksHONG KONG – The “beacon city for electric vehicles” has now dimmed, as Hong Kong drops its generous tax break on electric cars.

On February 22nd the Finance Secretary of Hong Kong Paul Chan Mo-po announced that the government will be drastically cutting back on the tax exemption offered on the registration of electric vehicles, as such vehicles have become popular enough to no longer warrant heavy tax breaks.

Private vehicles being registered in Hong Kong are levied with a tax based on the value of the car, with the first HKD 150 000 of a car’s value taxed at 40 percent, with 70 percent charged on the next HKD 150 000, an additional 100 percent on the next HKD 200 000, and a final 115 percent on the remaining value.

Electric vehicles have been exempt from the taxes since 1994.

Howev...

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Tax Collections Fall 4% in Hong Kong

May 4, 2016 Taxation in Hong Kong

Hong KongHONG KONG – Hong Kong’s slumping property market is hurting the government’s coffers as collections of Estate Duties fall.

In a press release issued on May 3rd the Commissioner of the Inland Revenue Department of Hong Kong stated that tax revenues over the last financial year tax revenues dropped by 4 percent compared to the tax revenues over the 2014-2015 financial year.

The biggest contributor to the decreased tax collections was a drop in the revenues from Estate Duty, which reached only HKD 30 million 2015-2016, despite peaking at HKD 178.2 million in the previous year.

Drops were also seen in the collection of Stamp Duty, which fell by 16 percent to reach HKD 62 681 million, and Salaries Tax, which fell by 2 percent to HKD 57 868 million.

The decrease in collection of Stamp Duty and...

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Tax Revenues Rocket in Hong Kong

May 5, 2015 Taxation in Hong Kong

HONG KONG – Tax measures aimed at cooling the property market in Hong Kong have resulted in an unprecedented rise in tax revenues.

On May 4th the Commissioner of the Inland Revenue Department Wong Kuen-fai announced that the collection of tax revenues in Hong Kong have reached a five year high.

The total tax collections for the 2015 fiscal year were HKD 301.9 billion, a level approximately 24 percent higher than in the previous year.

The spike in the collection of tax revenues has been attributed largely to an increase in the revenues gathered from the collection of stamp duty on the sale of properties, which rose by 80 percent to hit HKD 74.8 billion, after the duties were hiked in order to reign in the city’s escalating property market.

It was noted by the Commissioner that the gove...

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