Category Taxation in Hong Kong

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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Hong Kong Needs Tax Changes

March 5, 2014 Taxation in Hong Kong

Hong KongHONG KONG – The cost of social programs in Hong Kong will inevitably rise over the next 30 years, and the government should implement tax changes now to be ready to support the ageing population.

On March 3rd a working group, set up by the government of Hong Kong in July 2013, released its anticipated report on the potential directions for economic and fiscal development of the territory over the next 30 years, and on the tax and administrative changes which need to be implemented to facilitate such plans.

The report indicated that after 2018 the economic output of the special administrative region may begin to diminish as the combined effects of an ageing population and local housing constraints put a limit on the effective workforce, and this process will put additional pressure on alr...

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Hong Kong Hits Record High Tax Revenues

May 3, 2013 Taxation in Hong Kong

Hong KongHONG KONG – Tax revenues in Hong Kong have reached a soaring new high, despite a slow down in the local real estate sector, an increase to tax free allowances and a decline on the local stock market.

In a press release issued on May 2nd the Inland Revenue Department (IRD) of Hong Kong revealed that tax revenues in the region over the 2012 financial year grew by 2 percent compared to the previous year, hitting a record high of HKD 242.2 billion.

The growth in tax revenues has been attributed to a 6 percent rise in collections of corporate income tax, which increased from HKD 118 billion to HKD 125 billion.

The IRD noted that collections of personal income taxes fell by 2 percent over the course of the year due to several increases to the tax allowances granted to individual tax payers.

Co...

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Hong Kong Spends Surplus on Social Boosts

February 28, 2013 Taxation in Hong Kong

Hong KongHONG KONG – Hong Kong has seen an unexpected budget surplus, and will now distribute the extra funds back to its citizens in the form of social assistance.

On February 27th the Financial Secretary of Hong Kong John Tsang unveiled the latest government budget for the territory, announcing nearly HKD 33 billion in once-off increases to social spending, welfare payouts and assistance programs for low income individuals.

John Tsang revealed that, while the government had anticipated a budget deficit of HKD 3.4 billion for the fiscal year ending March 31st, the better than forecast economic growth of Hong Kong and unexpectedly high tax collections have led to a surplus of HKD 64.9 billion for the year.

The advantageous financial position has allowed the government to expand its spending on soci...

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Vacant Property Taxed Mulled in Hong Kong

January 21, 2013 Taxation in Hong Kong

Hong Kong government buildingHONG KONG – Residents of Hong Kong could soon breathe a sigh of relief as new measures are mulled to ease the city’s shortage of houses.

In a radio interview conducted on January 20th the Chief Executive of Hong Kong Leung Chun-ying said that in the near future a tax may be imposed on newly built properties which are not sold to the public but are left vacant.

The proposed measure is aimed at addressing the cities growing housing problem by penalizing property developers who intentionally withhold large numbers of houses from the market in order to manipulate housing prices and artificially increase sale prices and rental costs.

Leung Chun-ying explained that property developers purchase land from the Hong Kong government under the condition that they complete construction of an allotted ...

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