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Hong Kong Signs Free Trade Agreement with Peru

On 15 November 2024, Hong Kong and Peru signed a landmark Free Trade Agreement (FTA) during the APEC Economic Leaders’ Meeting in Lima. The agreement covers competition, intellectual property, investment, trade in goods and services, and online commerce, among other strategic areas. It grants Hong Kong enterprises access to over 150 Peruvian industries, surpassing WTO commitments. The FTA provides a stable legal framework to boost commerce, fostering opportunities for Hong Kong businesses to expand into Latin America. With bilateral trade growing steadily—merchandise at 4% annually (2019-2023) and services at 16.3% annually (2018-2022)—this partnership solidifies economic ties.

Latest Insights

The New Era of Customs Duties: A Comprehensive Analysis of the Law of the People’s Republic of China on Customs Duties (2024) and its Comparison with the 2017 Regulations

On April 26, 2024, the Standing Committee of the National People’s Congress promulgated the Law of the People’s Republic of China on Customs Duties under Presidential Decree No. 23. This new law, effective from December 1, 2024, marks a significant overhaul of China’s customs duty framework, replacing the 2017 Regulations on Import and Export Duties. The new law aims to standardize customs duty collection and payment, promote foreign trade, and support high-quality development. It introduces a comprehensive framework, including duty items, rates, calculation methods, and tax incentives. The law also emphasizes compliance and enhanced roles for customs authorities, aiming for clarity and consistency in duty application, thus impacting international trade and customs administration in China.

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Exploring Hong Kong’s Patent Box Regime

On July 5th, 2024, the Hong Kong SAR Government enacted the Inland Revenue (Amendment) (Tax Concessions for Intellectual Property Income) Ordinance 2024, introducing a “patent box” tax incentive regime (“Patent Box Regime”). This regime offers tax concessions on qualifying profits derived from eligible intellectual property (IP) developed through research and development (R&D) activities within Hong Kong. By implementing this regime, Hong Kong seeks to stimulate the growth of IP trading, encourage companies to engage in IP-related activities, and solidify its position as a leading regional hub for intellectual property.

This article delves into the intricacies of the Patent Box Regime, highlighting its objectives, key features, eligibility criteria, and implications for businesses.

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Regulatory Updates

Dong Business in China

Our China Guides comprise a series of informative articles that provide insights on efficiently handling the compliance responsibilities and administrative formalities associated with establishing and scaling up your business in Mainland China.

Dong Business in Hong Kong

Are you looking to setting up a company in Hong Kong? Checkout our a series of comprehensive guides on how to set up and operate a business in Hong Kong.

Expanding your business into

Greater Bay Area

The Greater Bay Area (GBA) of China presents vast opportunities for businesses seeking to expand their operations in the region. The GBA comprises nine cities in Guangdong Province, Hong Kong, and Macau, with a combined population of over 70 million and a GDP of approximately USD 1.6 trillion. It is a critical part of China’s economic development strategy, aimed at creating a world-class metropolis and driving economic growth in the region.

We have a series of informative articles that delve into the various business opportunities available in the GBA. These articles cover a wide range of industries, including finance, technology, logistics, and tourism, among others. We provide insights on the GBA’s market potential, investment incentives, regulatory environment, and emerging trends that businesses can capitalize on.

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China Pushes for Nationwide Adoption of Fully Digitalised E-Invoices

Effective 1 December 2024, China’s State Administration of Taxation (SAT) has implemented fully digitalised e-invoices, or e-fapiao, nationwide. This initiative simplifies invoicing processes, replacing traditional paper-based invoices with a streamlined digital format featuring 17 key elements, including a unique 20-digit identification code. Legally equivalent to paper invoices, the e-invoice reduces administrative burden and enhances tax compliance. The move underscores China’s commitment to modernizing tax administration while promoting efficiency and standardization for businesses and consumers. By eliminating the need for duplicate copies, the digital system improves usability and supports the broader digital transformation of the country’s financial ecosystem.

Market Entry, Industry Updates and More...

China Extends Annual Public Holiday Entitlement

Effective 1 January 2025, China’s revised Regulation on Public Holidays increases the annual public holiday entitlement from 11 to 13 days. Chinese Lunar New Year’s Eve and 2nd May (Labour Day festivities) have been added, extending the Spring Festival holiday to four days and Labour Day holiday to two days. Employers must update employee handbooks, adjust overtime pay calculations to reflect triple pay on these new holidays, and revise payroll calculations considering fewer average working days. These changes provide employees with more rest days while prompting businesses to ensure compliance with adjusted policies and legal requirements.

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