Hong Kong tax review 2019

The year in review: the momentum of refinement of the Hong Kong's tax system continued in 2019.

We have seen the Government's efforts to further refine the Hong Kong tax system continued into 2019 by bringing in appropriate tax measures to accommodate diversified economic development and to honour Hong Kong's commitment to a fair international taxation system.

The Hong Kong tax review 2019 furnishes a summary of the significant tax updates last year and previews the possible developments in the year 2020.

Major tax initiatives by HKSAR for optimisation

  1. Unification of profits tax exemptions for privately offered funds irrespective of their structure, location of central management and control, size or purpose.
  2. Removal of the ring-fencing features identified by the European Union in respect of the Offshore Fund Regime and Offshore Private Equity Fund Regime.
  3. Provision of a legal basis for taxpayers to make an irrevocable written election to adopt the fair value basis for financial instruments for profits tax purposes. 
  4. Salaries tax deductions for qualifying health insurance premiums, qualifying annuity premiums and voluntary Mandatory Provident Fund contributions.  

Analysis on key themes:

  • Changes brought about by the international norms
  • Latest status of Hong Kong's tax treaty network
  • Key tax legislative developments in 2019
  • Guidance revised/issued by the Inland Revenue Department
  • Update on Hong Kong profits tax case
  • Hong Kong salaries tax developments

Contact us

Long Ma

Partner, PwC China

Tel: +[86] (10) 6533 3103

Fergus Wong

Director, PwC Hong Kong

Tel: +[852] 2289 5818

Anita Tsang

Director, PwC Hong Kong

Tel: +[852] 2289 3625

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