Hong Kong

Introduction to Seals and Chops of a Hong Kong Company   In respect of a company registered in Hong Kong, the “chops” we use on a daily basis are the signature stamp and the small round chop. The company name or the word of “For and on behalf of” is engraved on the chop, and usually be used when the authorized person signs the commercial documents.   However, both the old Companies Ordinance (previously Cap. 32) of the Hong Kong legislation and the new Companies Ordinance (Cap. 622) only provide rules for the adoption and use of the “Common Seal”. Only a seal that is made, adopted and used in accordance with the Companies Ordinance (“CO”) and articles of association is the Common Seal of a company.   In other words, the CO does not provide provisions on the signature stamp nor the small round chop. These two seals are […]

Comparison of Subsidiary and Branch Office in Hong Kong   The subsidiary company (in the form of a company limited by shares) and Non-Hong Kong company (known as branch office) are the two most commonly used investment vehicles for foreign companies to establish and carry out business in Hong Kong.   A Non-Hong Kong company, also commonly known as branch office, is considered an extension of the foreign company and is not a separate legal entity of its own. This means that the foreign company is responsible for the liability of its non-Hong Kong company. Additionally, the foreign company can also be sued in Hong Kong in the case of any dispute.   A branch office is also subject to same compliance requirements applicable to a subsidiary, except that of auditing of financial statements.  In accordance with the Companies Ordinance (Chapter 622 of Hong Kong laws), the annual financial statements […]

HK and Macao Tax Professionals May Practise in Qianhai and Shekou   Recently, Shenzhen tax authority released the interim measures for managing the practice of Hong Kong and Macao tax‑related professionals in the Shenzhen Qianhai‑Shekou Area of the China (Guangdong) Pilot Free Trade Zone (hereinafter referred to as the interim measures), which came into force on 13 January 2021.  According to the interim measures, qualified tax- related professionals from Hong Kong and Macao are allowed to practise in Shenzhen Qianhai- Shekou Area of Guangdong Free Trade Zone after registering with Shenzhen tax authority.   What kind of tax-related professionals can apply for the registration?   According to the interim measures, qualified tax-related professionals refer to the permanent residents of Hong Kong and Macao who have obtained the qualification of tax agent in Hong Kong or the qualification of auditor and accountant in Macao.   Hong Kong tax agent refers to the person who […]

Guide to Hong Kong Distance Business Programme (“D-Biz Programme”)   Under the Anti-Epidemic Fund, the Innovation and Technology Commission (ITC) has launched the Distance Business “D-Biz Programme” to support enterprises to continue their business and services during the epidemic. The Programme provides funding support through fast-track processing for enterprises to adopt IT solutions for developing distance business.   Funding Scope   The Programme covers 12 categories of IT solutions relating to distance business: Online business Online order taking and delivery, and smart self-service systems Online customer services and engagement Digital customer experience enhancement Digital payment / mobile point of sale Online / cloud-based financial management systems Online / cloud-based human resources management systems Remote document management, cloud storage and remote access services Virtual meeting and conference tools Virtual team management and communications Cybersecurity solutions Other online / custom-built / cloud-based business support systems   * Application projects should be commenced […]

  February 2020  Singapore Tax Singapore Budget 2020 The Singapore Budget is the country’s fiscal plan for the current financial year that is planned with Singapore’s current and future needs in mind. With the COVID-19 outbreak at a time of an uncertain economic outlook, 2020 has already seen its fair share of challenges. Deputy Prime Minister and Minister for Finance, Mr Heng Swee Keat, delivered his Budget 2020 speech on 18 Feb 2020. This year’s budget most commendable aspect is its focus beyond the immediate and medium-term, by continuing to catalyse enterprise transformation for the long-term, to help enterprises re-orientate their business models and operations. This article will provide you with the key measures on business tax, personal income tax, indirect tax, and others. I.    CORPORATE INCOME Tax 1. Corporate income tax rate and rebate The corporate income tax will remain at 17% and no changes to the partial […]

26 February 2020 Hong Kong Business Summary of Hong Kong SAR Budget for 2020/21 Financial Secretary Paul Chan Mo-po announced the 2020/21 Hong Kong Budget on 26 February 2020. Hong Kong’s economy has seen negative growth since the second half of 2019 due to the double whammy of the extradition bill crisis and an outbreak of the novel coronavirus disease. Therefore, Hong Kong Government will implement new relief measures to respond the public concern, including cash payout. In view of the negative growth in 2019, Hong Kong Government will implement counter-cyclical measures, with the objective of “supporting enterprises, safeguarding jobs, stimulating the economy and relieving people’s burden”, so as to help Hong Kong tide over the difficulties. The major proposals with respect to tax for individual and business are summarized as below: Economic Situation in 2019 1. Total exports of goods fell by 4.7 per cent in real terms for […]

February 26, 2020 Hong Kong Business Hong Kong Plans to Waive Annual Return Registration Fee for Two Years Financial Secretary of the Hong Kong Special Administrative Region, Mr. Paul Chan Mo-po proposed to waive the registration fee for all annual returns (except for late delivery) for two years. Currently, the budget is under the scrutiny by the Legislative Council, but it is expected to be approved. For every limited company registered in the Hong Kong Companies Registry, including local company and non-Hong Kong company, it requires to file an annual return to the Hong Kong Companies Registry within 42 days after the company’s return date. If the budget is approved, the registration fee for annual return shall be： Registration Fee of Annual Returns for Local Private Companies Having a Share Capital (Form NAR1) If delivered HKD within 42 days after the company’s return date@ Waive^ more than 42 days after […]

Hong Kong Taxation The HKSAR Government Proposes to Reduce the Profits Tax for the Year of Assessment 2019/20 On 26 February 2020, the Financial Secretary of Hong Kong, Mr. Paul Chan Mo-po, delivered 2020/2021 Budget. He proposed a one-off reduction of profits tax for the year of assessment 2019/20 by 100%, subject to a ceiling of HK$20,000 per case. This concessionary measure is applicable for the profits tax for the year of assessment 2019/20, that is, for the accounting year ended within the period from 1 April 2019 to 31 March 2020. No additional application for this proposed concessionary measure is required. Taxpayers should file their profits tax returns as usual. Although this proposed concessionary measure is subject to review and approval by the Legislative Council of Hong Kong, it will generally be adopted based on experience. 1. Hong Kong’s Tax System Hong Kong adopts a territorial source principle of […]

On 27 February 2019, the Financial Secretary of Hong Kong, Mr. Paul Chan, delivered 2019/2020 Budget. He proposed a one-off reduction of profits tax for the year of assessment 2018/19 by 75%, subject to a ceiling of HK$20,000 per case. This concessionary measure is applicable for the profits tax for the year of assessment 2018/19, that is, for the accounting period from 1 April 2018 to 31 March 2019. No additional application for this proposed concessionary measure is required. Taxpayers should file their profits tax returns as usual. Although this proposed concessionary measure is subject to review and approval by the Legislative Council of Hong Kong, it will generally be adopted based on experience. Hong Kong’s Tax System Hong Kong adopts a territorial source principle of taxation. Only profits arise in or are derived from Hong Kong are taxable here. Profits sourced elsewhere are not subject to Hong Kong Profits […]