Hong Kong tax review 2018

The year in review - efforts to optimise tax in Hong Kong continued, and 2018 proved to be another productive year.

We have been encouraged by the commitment and diligence of the Government for promoting diversified economic development with appropriate tax incentives, while increasing tax transparency in line with the latest international standards.

The Hong Kong tax review 2018 provides an overview of the key updates concerning tax issues last year, and anticipates the next developments to follow in 2019.

Major updates by HKSAR for tax optimisation include:

  1. A two-tier profits tax system 
  2. An enhanced tax deduction for qualifying research and development (R&D) expenditure 
  3. A tax deduction for capital expenditure on three additional types of specified intellectual property rights (IPRs)
  4. Extending profits tax exemption to onshore privately offered open-ended fund companies (OFCs)

Analysis on key themes:

  • Compliance with international standards on anti-BEPS measures
  • Latest status of Hong Kong tax treaty network
  • Key tax legislative developments in 2018
  • Guidance revised by the Inland Revenue Department
  • Update on Hong Kong profits tax cases
  • Hong Kong salaries tax developments

Contact us

Matthew Mui

Partner, PwC Hong Kong

Tel: +[86] (10) 6533 3028

Fergus Wong

Director, PwC Hong Kong

Tel: +[852] 2289 5818

Anita Tsang

Associate Director, PwC Hong Kong

Tel: +[852] 2289 3625

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