Key Amendments to the Hong Kong Inland Revenue Ordinance
Last week, the Legislative Council of Hong Kong passed the Inland Revenue (Amendment) No 7 Bill 2018 into national legislation.
Mr James Lau, the Secretary for Financial Services & the Hong Kong Treasury welcomed the passage optimistically. Stating the new objectives will achieve a highly structured tax programme for companies conducting business in Asia; which in turn will help foster trading activities between Hong Kong and other places.
The new ordinance gives effect to four key amendments to the Inland Revenue Ordinance as follows:
- Align the tax treatment of financial instruments with their appropriate payments.
- Allow for the deduction of interest expenses payable to overseas export credit agencies.
- Refine provisions that can implement the automatic exchange of financial account information in tax matters.
- Avoid a double non-taxation on incomes of visiting teachers and foreign researchers.
Other areas of the ordinance includes Trust & Equity law, as the definition of a sibling as per Hong Kong trust legislation was also examined and amended.
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