The tax extended exemption is seen as a positive move by the hong kong government to make it more attractive for pe funds to set up and expand their business operating in hong. This alert discusses the comments made by hong kongs inland revenue department ird at its 2015 annual meeting with the hong kong institute of certified public accountants annual meeting on the application of antiavoidance provisions against the transfer of tax losses in a courtfree amalgamation, the interpretation of the deductibility of bank loans. Charitable institution under section 88 of the inland revenue ordinance. It serves under ministry of finance to collect taxes in hong kong. Proposed amendments to the inland revenue ordinance cap. Any money held under section 527 of the inland revenue ordinance. Newspaper notice published by the inland revenue department on 22 may 2.
Authorized under the inland revenue ordinance, the assessing. Inland revenue synonyms, inland revenue pronunciation, inland revenue translation, english dictionary definition of inland revenue. Head 76 inland revenue department 5 to assist taxpayers in understanding their rights and fulfilling their obligations under the inland revenue ordinance, the department continued to make use of its website and a 24hour fax system to provide comprehensive. The commissioner of inland revenue, who also holds the statutory appointments of collector of stamp revenue and estate duty commissioner, is responsible for the administration of the following ordinances and the rules and regulations made under these. Board of inland revenue to specify forms 1 the board of inland revenue may specify any forms which may be necessary for carrying this ordinance into effect. The inland revenue department ird of hong kong government is one of hong kong government departments which is responsible for the administration of the following hong kong ordinances on taxes and duties and the related rules and regulations. The inland revenue department is responsible for the overall administration of. Answer to question 2 a under section 64 of the inland revenue. This alert discusses the comments made by hong kongs inland revenue department ird at its 2015 annual meeting with the hong kong institute of certified public accountants annual meeting on the application of antiavoidance provisions against the transfer of tax losses in a courtfree amalgamation, the interpretation of the deductibility of bank loans as bad debts and. The government has issued a press release concerning a case under section 82 of the inland revenue ordinance iro. Charitable institution under section 88 of the inland revenue. Hong kong issues guidance on adoption of the authorized. This allows the city to agree with another jurisdiction relief from double taxation, as well as the exchange of information related to tax imposed by the laws of hong kong or such other jurisdiction. Transfer pricing has become an increasingly important tax issue in hong kong.
The commissioner of inland revenue, who also holds the statutory appointments of collector of stamp revenue and estate duty commissioner, is responsible for the administration of the following ordinances and the rules and regulations made under these ordinances. The effective operation of hong kong s simple tax system with low tax rates requires a high degree of compliance by taxpayers. We aim to conclude aeoi negotiations and include the relevant partners in a new schedule to the inland revenue ordinance subject to negative vetting by legco by the end of. These developments have shaped the transfer pricing landscape in hong kong. Under section 14 of the hong kong inland revenue ordinance iro, in order for a person to be chargeable to hong kong profits tax, three conditions must be satisfied.
In brief in the 2014 annual meeting meeting between the hong kong inland revenue department ird and. Charitable institution under section 88 of the inland. Background with the enactment of the inland revenue amendment ordinance 1998, a concessionary deduction for approved charitable donations made in the year of assessment by taxpayers subject to salaries tax and personal assessment is allowable under section 26c of the inland revenue ordinance the ordinance. You will learn about the salary tax rate, allowable deductions for employees, tax benefits for employers and requirements of filing tax returns. Under section 70a of the inland revenue ordinance, a taxpayer can apply to correct. Please select the reason and mark a x in the box emigrate to retire and leave hong kong to reside in. Inland revenue department from hong kong, with products under the category of. There is also no provision in the iro that exempts a voluntary or nonpro. Hong kong taxation of nonresidents fergus wong national tax policy services pricewaterhousecoopers 28 august 2012. Hong kong tax news flash hong kong is now in a competitive position for setting up a regional corporate treasury centre the legislative council passed the inland revenue amendment no. Taxability of trading profits in hong kong asian tax advisor. Hong kong inland revenue department new submitted hong kong websites.
Apr07 44 45 ird hong kong institute of certified public. The inland revenue ordinance is one of hong kongs ordinances. Inland revenue shares its views on various salaries tax issues. Automatic exchange of financial account information guidance for financial institutions 2 an occupational retirement scheme registered under the occupational retirement schemes ordinance cap. Hong kong salaries tax in hong kong, personal tax is often referred to salary tax. Hong kong ird tax investigation services tax investigation and field audit are methods of investigation set out by the hong kong inland revenue department when they are have doubts regarding the sources of income, the completeness and accuracy of the tax returns filed by taxpayers. To print the whole chapter in html, please click at the bottom of the toc panel and then click. By providing a legal framework in hong kong for implementing automatic exchange of financial account information in tax matters aeoi, the amendment ordinance enables hong kong to deliver its pledge of support for the new international standard on aeoi as promulgated by the organisation for economic cooperation and development oecd, a government spokesman said. Inland revenue department ird for recognition as taxexempt charities. Short title and commencement a3363 division 2 interpretation of this ordinance.
Inland revenue department hong kong departmental interpretation and practice notes no. Thus, pursuant to the bill, hong kong may now enter into what is commonly. The inland revenue ordinance is one of hong kong s ordinances. Hong kong charities hong kong inland revenue ordinance. The commissioner of inland revenue and several other government officials are invited to attend meetings of the jlct as participating observers. Part i represents a specific, individual, material embodiment of a distinct intellectual or artistic creation found in international bureau of fiscal documentation. Hong kong under sections 151b or ba of the inland revenue ordinance iro. Apple is good means to find documents having the exact phrase apple is good. With our assistance, village people project limited vpp was founded in march 2009 and we assisted vpp to obtain hong kong charitable status under section 88 of hong kong inland revenue ordinance from the inland revenue department ird hong kong in the same year, as we have for other hong kong charities. Inland revenue department ird for recognition as taxexempt charities, the ird isnt responsible for the registration of charities. The synopsis paper has been submitted to the government for consideration. It proposes the financial services and the treasury bureau, hong kong securities and futures commission and inland revenue department to work out the framework applicable to this category of pe fund managersadvisors.
Apple and lemon means to find documents having both words. It is also the primary duty of every taxpayer under law to file timely and accurate returns to the inland revenue department ird. Field audit and tax investigation under the hong kong inland revenue ordinance iro, the lodgment of an incorrect return, without reasonable excuse, is an offence. The technical amendments on automatic exchange of financial account information in tax matters i. Inland revenue ordinance gazette number version date long. In addition, sums received by a nonresident from the sale or assignment of a performers economic right will also be deemed to be profits of the nonresident chargeable to tax in hong kong under a new deeming section 151bb of the. Leaving hong kong case notification under section 526 of. Inland revenue definition of inland revenue by the free. Rates of depreciation 1 for the purpose of the ordinance, the expression machinery or plant. The inland revenue amendment ordinance 2018 the amendment ordinance was gazetted on 2 february 2018.
Legislative council brief inland revenue ordinance chapter 112 inland revenue amendment no. Answer to question 2 a under section 64 of the inland. Hong kong recently passed the inland revenue amendment bill 20 the bill on july 10, 20. They contain the departments interpretation and practices in relation to the. D386, download d386 doc english download d386 pdf english. Also participating in the jlcts meetings are the hong kong association of banks, the capital markets tax committee and the federation of hong kong industries. Hong kong, 6 february 2017 hong kong adopts a territorial basis of taxation. Hong kong passes legislation for a twotier profits tax rates regime.
Citation these rules may be cited as the inland revenue rules. For an organization to be recognized as a taxexempt charity, it must be. Answer to question 2 a under section 64 of the inland revenue ordinance, the requirements of a valid objection are. This deduction is additional to that for royalty or recurrent payment in connection with the use of intellectual property. An ordinance to impose a tax on property, earnings and profits. Inland revenue ordinance gazette number version date long title. Statutory rules section 202 of the inland revenue ordinance iro is the only statutory provision. This ordinance may be cited as the inland revenue ordinance.
The inland revenue department is responsible for the. The inland revenue department is also known as ird which is a hong kong government department. In order to recover back year taxes, provide a deterrent to tax evasion, and educate taxpayers on the need to file proper and correct returns, the hong. Sukuk market in hong kong consultation paper financial services and the.
Sukuk market in hong kong consultation paper financial services and the treasury bureau. This article provides you with an overview of the salary tax system in hong kong. Personal assessment who is about to leave hong kong for a period exceeding 1 month must notify. Inland revenue department stamp office 3f, revenue tower, 5 gloucester road, wan chai, hong kong. Hong kong salaries tax business guide guidemehongkong. A former senior system engineer of a bank was convicted on four charges of evading property tax and salaries tax by omitting to report rental income and making false statements in connection with claims for deduction of home loan interest. In brief in the 2014 annual meeting meeting between the hong kong inland revenue department ird and the hong kong institute of certified public accountants hkicpa. China tax national technical centre hong kong tax news. Section 26c approved charitable donations these notes are issued for the information of taxpayers and their tax representatives. The tax extended exemption is seen as a positive move by the hong kong government to make it more attractive for pe funds to set up and expand their. Under section 70a of the inland revenue ordinance, a taxpayer can apply to correct an assessment within six years after the end of the year of assessment concerned or six months after a relative notice of assessment is served, whichever is later, if they can prove that the tax charged for that year of assessment is excessive by.
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