Update of ordinance

1. in choronological order

2. in respect of automatice exchange of information [read]

 


In choronlogical order

Inland Revenue (Amendment) (No. 6) Ordinance 2018, effective on 13th July [read]

Press release by the government Information Services Department on amendment no. 6 [read

  • The Amendment (No. 6), which primarily implements the minimum standards of the Base Erosion and Profit Shifting (BEPS) package promulgated by the OECD and codifies the transfer pricing principles into the Inland Revenue Ordinance , was gazetted and came into force on July 13 2018. 
  • The provisions relating to transfer pricing, relief consequential on transfer pricing adjustment, advance pricing arrangement, tax credit and profits tax concessions will apply in relation to tax payable for a year of assessment beginning on or after April 1, 2018.
  • The provisions relating to CbC reporting will apply in relation to an accounting period beginning on or after January 1, 2018, whilst those relating to master file and local file will apply in relation to an accounting period beginning on or after April 1, 2018.
  • Sections 15F (taxation of income derived from intellectual property by non-resident associates) and 50AAK (attribution of income or loss to non-resident persons' permanent establishments in Hong Kong) will apply in relation to a year of assessment beginning on or after April 1, 2019

Inland Revenue (Convention on Mutual Administrative Assistance in Tax Matters) Order, effective on 13th July [read]

  • The Inland Revenue (Convention on Mutual Administrative Assistance in Tax Matters) Order (the Order) was gazetted and came into operation today (July 13). The Convention on Mutual Administrative Assistance in Tax Matters (the Convention) will enter into force in Hong Kong on September 1, 2018 to allow Hong Kong to fastly and effectively implement the automatic exchange of financial account information in tax matters (AEOI) and the Base Erosion and Profit Shifting (BEPS) package promulgated by the Organisation for Economic Co-operation and Development (OECD). 
  • See the press release by the Information Services Dept on the Order [read]

Inland Revenue (Amendment) (No. 5) Ordinance 2018, effective on 29th June [read]

  • The Inland Revenue (Amendment) (No. 5) Ordinance 2018 (the Amendment Ordinance) was aimed to expand the scope of profits tax deductions for capital expenditure incurred by enterprises for the purchase of intellectual property (IP) rights from five types to eight with effect from the year of tax assessment 2018/19.
  • See press release by the Information Services Dept on amendment no. 5 [read]

Inland Revenue (Amendment) (No. 4) Ordinance 2018, effective on 25th May [read]

  • The amendment to the Ordinance is to give effect to certain proposals concerning tax concessions in the Budget introduced by the Government for the 2018–2019 financial year; to introduce a new personal disability allowance; to provide for the meaning of certain references for the purposes of calculating a person’s net chargeable income for computing provisional salaries tax; to introduce additional grounds for the holding over of payment of provisional salaries tax and provisional profits tax, and provide for the extension of the time limit for an application for the holding over of those taxes on those grounds; and to provide for incidental and related matters.

Inland Revenue (Amendment) (No. 4) Bill 2018, effective on 18th May [read]

  • The Government published the Inland Revenue (Amendment) (No. 4) Bill 2018 in the Gazette today (May 18).  The bill seeks to provide a tax deduction under salaries tax and personal assessment to people who purchase eligible health insurance products for themselves or their specified relatives under the Voluntary Health Insurance Scheme (VHIS).
  • Press release by the Information Services Dept on amendment no. 4 bill [read]

Inland Revenue (Amendment) (No. 3) Bill 2018, effective on 20th April [read

  • The Inland Revenue (Amendment) (No. 3) Bill 2018 was gazetted today (April 20) to provide for enhanced tax deduction for expenditure incurred by enterprises on qualifying research and development (R&D) activities, in order to encourage more enterprises to conduct R&D activities in Hong Kong.
  • Press release by the Information Services Dept on amendment no. 3 bill [read]

Inland Revenue (Amendment) (No. 3) Ordinance 2018, effective 21st March [read]

  • This amendment introduces a two-tiered rate of profits tax, reducing the existing tax rates by half on assessable profits up to HK$2 million for invidiuals and corporations respectively. The two-tiered rate shall take effect as from the year of assessment commencing on and after 1st April 2018.

Inland Revenue (Amendment) (No. 2) Ordinance 2018, effective on 30th July [read]

  • The Inland Revenue (Amendment) (No. 2) Ordinance 2018, which extends profits tax exemption to onshore privately offered OFCs, will took effect on July 30, 2018.
  • Press release by the Information Services Dept on amendment no. 2 [read]

Inland Revenue (Amendment) Ordinance 2018, effective on 2nd Feb 2018 [read]

  • The Inland Revenue (Amendment) Ordinance 2018 (the Ordinance) was gazetted today (February 2). The technical amendments on automatic exchange of financial account information in tax matters (AEOI) (i.e. clauses 5 to 11) under the Ordinance will come into operation on January 1, 2019, while other provisions take effect today. 
  •  "The Ordinance provides the legal framework for Hong Kong to implement multilateral tax arrangements under the amended Inland Revenue Ordinance (IRO), thereby allowing more effective implementation of the arrangements relating to AEOI as well as automatic exchange of country-by-country reports (i.e. the reports in which multinational corporations set out the information such as amounts of revenue, profits and tax paid for their business operations in each jurisdiction) and spontaneous exchange of information on tax rulings under the BEPS package," a government spokesman said.
  • Press release by the Information Services Dept on amendment [read]

Inland Revenue (Amendment) (No. 2) Ordinance 2017, effective on 1st July 2017 [read]

The Amendment Ordinance is mainly to –

  1. amend the definition of reportable jurisdiction so that reportable jurisdictions could include territories outside Hong Kong irrespective of whether they are parties to the arrangements having effect under section 49(1A) of the Inland Revenue Ordinance and requiring disclosure of information concerning tax of the territories.
  2. add 73 jurisdictions to the list of reportable jurisdictions (in addition to the 2 jurisdictions already included in the list).

Inland Revenue Amendment (No. 3) Ordinance 2016 [Read

  • The 2016 amendment to the IRO was aimed to translate the OECD/G20 CRS requirements into domestic regulations, in order to put in place a legal framework for the exchange of tax information that is in line with the OECD CRS rules. [read]