Category Taxation in Hong Kong

Foreigners To Face More Tax in Hong Kong

October 28, 2012 Taxation in Hong Kong

john tsangHONG KONG – Foreign investors looking to enter the property market in Hong Kong will now face new tax barriers, as the local government looks to quell the potential risk of a bubble in the housing market.

From October 26th a new 15 percent tax was imposed in Hong Kong on the purchase of property by local and foreign corporate entities and by all individuals who do not permanently reside in Hong Kong.

At the announcement of the new tax the Financial Secretary of Hong Kong John Tsang also revealed that the tax rate applicable on the resale of property, which is already instated in Hong Kong, was also raised by 5 percent, with all homes sold within the first six month of purchase now facing a tax of 20 percent, and sales of homes held by investors for a period of between 7 and 12 months subj...

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Extensive Tax Cuts in Hong Kong

February 3, 2012 Taxation in Hong Kong

John TsangThe government of Hong Kong has put forward a plan for the budget for the coming financial year containing several new tax measures aimed at reducing the tax burdens on taxpayers.

On February 1st the Financial Secretary of Hong Kong John Tsang outlined the budget plan for the 2012 – 2013 financial year, containing several tax changes which are expected to benefit more than 1.62 million taxpayers.

One of the primary changes outlined in the budget plan is a 75 percent reduction to profits taxes and salary taxes for the 2011 – 2012 financial year. If approved, the changes will cut the government’s revenues by approximately HKD 10.02 billion in the coming financial year.

In order to further reduce tax burdens , the basic allowance, married couple allowance, and dependant allowances have been i...

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Hong Kong Reports Tax Revenues Growths

November 2, 2011 Taxation in Hong Kong

Tax revenue in Hong KongHONG 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...

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Hong Kong Residents to See Unexpected Tax Waiver

March 3, 2011 Taxation in Hong Kong

john-tsang-handout2Hong Kong residents can look forward to a HKD 6000 cash handout and a significant income tax waiver, under the government’s newly pronounced budget plans.

On March 2nd the Hong Kong Financial Secretary John Tsang announced an unexpected revision to the recently released government budget, revealing that all permanent resident of Hong Kong over the age of 18 years will now be eligible to receive a onetime HKD 6 000 (approx. USD 770) cash payment. Recipients will be able to withdraw the entire amount in one sum if they wish, although the Minister said that measures will be instated encouraging people to save...

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Greece to Improve Tax Department Transparency

May 26, 2010 Taxation in Hong Kong

GramvousaThe Greek Government has set out to deliver vast improvements to the integrity of its national tax administration department. The efforts have been initiated with the investigations and dismissal of employees suspected of tax evasion, corruption, smuggling, and other illegal activity.

On May 25th the Finance Ministry of Greece announced a set of sweeping investigations and terminations into employees suspected of illegal activities. According to a statement released by the Ministry, 20 tax-office directors have already been fired for failing to meet preset collection targets. A total of 234 employees have also been selected to be scrutinized for not filing personal tax returns in the 2007-2008 financial year. The property holdings of an additional 70 employees will also be examined...

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