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.