Last week Hong Kong lawmakers passed several tax measures announced in the Budget for 2017-18 that are expected to reduce Hong Kong tax revenue by 2 billion HKD.
The following changes have been implemented, commencing from the year of assessment 2017/18:
Since 1 May 2016, Business Tax has no longer been under China’s indirect tax regime and this signifies the completion of the B2V Reform in China. The VAT chain in China is completed for largely all industries and taxpayers could claim VAT credit for the purchase of tangible goods, immovable properties, intangibles and most services.
The Shanghai FTZ has issued its first all-in-one license to Sinopec Shanghai Gaoqiao Petrochemicals Company.
General Administration of Quality Supervision, Inspection and Quarantine, the state body in charge of customs inspection and quarantine, authorized the zone to combine licenses from different departments into one. This means that manufacturing businesses no longer need to apply for each permit separately, the zone authorities will review all company's manufacturing facilities and products just once, they can also decide whether to exempt a company from license renewal inspections. The new practice will save companies both time and application costs.
Hong Kong recently signed agreements with six more jurisdictions, namely Belgium, Canada, Guernsey, Italy, Mexico and the Netherlands, for conducting automatic exchange of financial account information in tax matters (AEOI).
A Government spokesman said “We have been seeking to expand Hong Kong's AEOI network with our tax treaty partners. The signing of agreements with six more jurisdictions, bringing up the number of Hong Kong’s AEOI partners to a total of nine (including Japan, Korea and the United Kingdom), signifies the Government's efforts in this drive”.