In 2016, the Chinese government has taken various measures in view to increase its foreign direct investment (FDI). Such action led to introduction of numerous tax incentive schemes which are appealing to foreign investors in some industries and sectors. The below summary provides you with the details.
Hong Kong has signed a comprehensive agreement for the avoidance of double taxation (CDTA) with Latvia on 13th April, 2016. This is the 35th CDTA that Hong Kong has signed with its trading partners and it signifies Hong Kong's ongoing efforts to expand its CDTA network, in particular with economies along the Belt and Road. The Hong Kong Government emphasized that the CDTA sets out clearly the allocation of taxing rights between the two jurisdictions and therefore will help investors better assess their potential tax liabilities from cross-border economic activities. Furthermore, the agreement will bolster the economic and trade connections between the two places. It will also provide added incentives for companies in Latvia to do business or invest in Hong Kong, and vice versa.
The European Parliament has eventually adopted the General Data Protection Regulation recently, subsequent to more than 4 years of lengthy negotiations and around 4,000 amendments.
The regulation will entered into force two years after it is published in the Official Journal. From then onwards, companies (including MNC with subsidiaries in Europe) are required to implement a series of measures so as to make themselves fully complied with the new data protection rules, particularly taking into consideration the fact that all data protection authorities will have the power to impose heavy financial sanctions in the occasion of infringements in the future.
Hong Kong and Russia have entered into a Comprehensive Double Tax Agreement (“CDTA”) on Jan 18, 2016. This is the 34th CDTA that Hong Kong has signed with its trading partners. The CDTA sets out clearly the allocation of taxing rights between the two jurisdictions and thus will help investors better assess their potential tax liabilities from cross-border economic activities.