Hong Kong tax review 2021
The year in review: international tax co-operation and accelerating digital transformation drive Hong Kong towards a new tax era.
While 2021 has been another turbulent year with the COVID-19 pandemic continuing to pose challenges, signs of economic recovery have emerged under the ‘new normal’. The OECD has achieved significant progress in addressing the tax challenges of the digitalisation of the economy, and Hong Kong is expected to actively implement the BEPS 2.0 proposals. Meanwhile, the Hong Kong SAR Government has invested significant resources to accelerate the digital transformation of the tax administration in Hong Kong, and has further refined the regulatory environment and tax system to enhance Hong Kong’s competitiveness.
The Hong Kong Tax Review 2021 summarises the significant tax updates in 2021 and previews the upcoming tax developments in 2022.
Landmark tax and related legislative measures enacted in 2021
- Enhancing the statutory framework for furnishing of tax returns
- Tax concessions for carried interest
- A re-domiciliation mechanism for foreign funds
- Revised foreign tax deduction rules
- Codified tax treatments for court-free amalgamations
Other significant tax updates in 2021
- Addition of Hong Kong to the EU greylist
- Hong Kong’s responses to BEPS 2.0
- Latest status of Hong Kong’s tax treaty network
- Guidance revised/issued by the Inland Revenue Department
- Update on Hong Kong profits tax case
- Update on Hong Kong stamp duty cases
- Hong Kong salaries tax developments
Related content
Follow us
