Update of ordinance

1. in chronological order

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

 

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In chronological order

Amendments to Inland Revenue Ordinance  [read]

• the amendments cover the period from 2003 to 2020.

The Arrangement between the Hong Kong Special Administrative Region and the Macao Special Administrative Region for the Elimination of Double Taxation with respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance has entered into force on 18 August 2020 (24 August 2020) [read]

• The DTA between Hong Kong and Macao will take effect for year of assessment beginning on and after 1st April 2021.

Exemption from Profits Tax (Feed-in Tariff Scheme) Order

• This Order comes into operation on 1 March 2020.

Inland Revenue (Amendment) (Tax Concessions) Ordinance 2019 (Ordinance No. 9 of 2019), Effective for Year of Assessment 2018/19 [read]

• This Ordinance amended the Inland Revenue Ordinance to give effect to the proposals made by the Government in 2019 to reduce the amounts of salaries tax, profits tax and tax under personal assessment payable for the year of assessment 2018-19 by 100%, subject to a maximum of $20,000 in each case. 

 

Inland Revenue (Double Taxation Relief and Prevention of Fiscal Evasion with respect to Taxes on Income) (Republic of Estonia) Order, dated 17 Sept 2019 [read]

• The Contracting Parties shall notify each other in writing of the completion of the procedures required by its law for the bringing into force of this Agreement. The Agreement shall enter into force on the date of the later of these notifications.

Inland Revenue (Double Taxation Relief and Prevention of Fiscal Evasion with respect to Taxes on Income) (Kingdom of Cambodia) Order, dated 17 Sept 2019 [read]

• Each of the Contracting Parties shall notify the other in writing of the completion of the procedures required by its law for the entry into force of this Agreement. The Agreement shall enter into force on the date of receipt of the later of these notifications.

Specification of Arrangements (Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income) (Fifth Protocol) Order, dated 17 Sept 2019 [read]

• The Fifth Protocol provides for the update on the avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income between the Central People's Government and the Government of HKSAR. 
• The Protocol shall, upon the written notifications by both Sides of the completion of their respective required approval procedures, enter into force on the date of the later of these notifications.

The Inland Revenue and MPF Schemes Legislation (Tax Deductions for Annuity Premiums and MPF Voluntary Contributions) (Amendment) Ordinance 2018, effective on 1st April 2019 [read]

The Inland Revenue Ordinance was amended to introduce new concessionary deductions concerning salaries tax and tax under personal assessment that may be allowed for annuity premiums paid under certain deferred annuity policies and for certain tax-deductible voluntary contributions; to amend the Mandatory Provident Fund Schemes Ordinance and the Mandatory Provident Fund Schemes (General) Regulation to provide for the tax-deductible voluntary contributions; and to provide for related and transitional matters.

Inland Revenue (Amendment) (No. 8) Ordinance 2018, effective on 1st April 2019 [read]

• To amend the Inland Revenue Ordinance to introduce a new concessionary deduction concerning salaries tax and tax under personal assessment that may be allowed for premiums paid in respect of insurance plans certified to be in compliance with the Government's Voluntary Health Insurance Scheme; and to provide for related and transitional matters

Inland Revenue (Amendment) (No. 2) Ordinance 2019, effective on 1st March 2019 [read]

The amendment is aimed at 

• clarify that the concept of "controlling person", in relation to a trust, covers trustees and beneficiaries;
• clarify that controlling persons will be identified, in relation to any legal person which is functionally equivalent or similar to a trust, in a way similar to the way in which controlling persons are identified in relation to a trust;
• provide that the term "investment entity" is to be interpreted in a manner consistent with the recommendations of the Financial Action Task Force;
• incorporate the residency rules in relation to financial institutions (other than trusts) that do not have a residence for tax purposes.

Inland Revenue (Amendment) Ordinance 2019, effective on 20th Feb 2019 [read]

• The new Ordinance gives effect to five amendments to the Inland Revenue Ordinance (IRO). These include aligning the tax treatment of financial instruments with their accounting treatment; allowing taxpayers the deduction of interest expenses payable to overseas export credit agencies; refining the provisions that implement the arrangement for automatic exchange of financial account information in tax matters (AEOI); avoiding double non-taxation of income of visiting teachers and researchers; and revising the meaning of the sibling relationship.

Inland Revenue (Amendment) (No. 9) Ordinance 2018, effective on 1st April 2018 [read] 

• To make amendments relating to personal assessment, environmental protection installations, and qualifying debt instruments

Inland Revenue (Amendment) (No. 7) Ordinance 2018, effective on 1st April 2018 [read]

• The Government published in the Gazette today (November 2) the Inland Revenue (Amendment) (No. 7) Ordinance 2018 to implement the initiative announced in the Chief Executive's 2017 Policy Address of providing an enhanced tax deduction for the expenditures incurred by enterprises on research and development (R&D) activities in Hong Kong.
• The Ordinance stipulates that R&D expenditures are now classified into either "Type A expenditures" which qualify for 100 per cent deduction or "Type B expenditures" which qualify for enhanced tax deduction. The enhanced tax deduction for "Type B expenditures" is a two-tier deduction regime. The deduction is 300 per cent for the first $2 million of the aggregate amount of payments made to "designated local research institutions" for "qualifying R&D activities", and expenditures incurred by the enterprises for in-house qualifying R&D, and 200 percent for the remaining amount. There is no cap on the amount of enhanced tax deduction. The arrangement is applicable to R&D expenditures incurred by enterprises on April 1, 2018, and thereafter. [read]

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