Inland Revenue amendments bill passed
It will take effect on 11 June after it is gazetted.
The measure amending miscellaneous provisions of Hong Kong’s Inland Revenue Ordinance has been passed, Secretary for Financial Services and the Treasury Christopher Hui said.
Secretary Hui welcomed the passage of the amendments, which he said codifies the tax treatment on qualifying amalgamations the transfer or succession of specified assets, offering better clarity and certainty of the relevant matters.
"It would also provide the legal basis to enable more businesses to voluntarily file tax returns, including financial statements, electronically, with the ultimate goal of implementing electronic filing of profits tax returns through the Business Tax Portal,” he said.
"Enhancing the foreign tax deduction regime will reduce the tax liability of Hong Kong branches of foreign corporations, in particular foreign banks, and holders of intellectual property.”
He added that it would also create a more favourable environment for businesses as it reinforces Hong Kong’s position as an attractive destination for financial services as well as research and development.
The Ordinance will be in operation on 11 June, whilst tax deductions will take effect from the year of assessment 2021/22.