Hong Kong: Amendments to the Foreign-Sourced Passive Income Exemption Regime
Proposed changes to Hong Kong’s foreign source income exemption regime for passive income are expected to come into force on 1 January 2023 with no transition period. All kinds of offshore passive income received by a constituent entity of a multinational enterprise group shall be deemed to be sourced in Hong Kong and, therefore, subject to profits tax in certain cases.
The Validity of Electronic Contracts and Signatures in Hong Kong
In Hong Kong, the Electronic Transactions Ordinance confers equal legal effect on electronic records used in contract formation and electronic signatures as their paper counterparts. Contracting online is subject to the same requirements as contracting offline.
e-HKD: The Future of Money in Hong Kong
The Hong Kong Monetary Authority has recently announced that it will be trialling the e-HKD digital currency from the fourth quarter of 2022. It is almost a given that the e-HKD will be a disruptor to the existing financial ecosystem, bringing along with it a unique set of benefits and challenges.
A Tale of Integrated Development: Shenzhen-Hong Kong Innovation and Technology Co-operation Zone
Hong Kong and Shenzhen have joined hands to develop a preeminent global innovation and technology hub in the Shenzhen-Hong Kong Innovation and Technology Co-operation Zone (“Co-operation Zone”) at the Lok Ma Chau Loop. A joint policy package has been introduced to promote collaboration and the “synergistic development” of the Co-operation Zone, setting out a wide array of funding schemes, support measures and resource-sharing initiatives available to qualified enterprises.
RCEP: Opportunities for Overseas Companies and Harnessing them via the GBA and Hong Kong
Signed by 15 countries including China and 10 ASEAN member states in November 2020, the Regional Comprehensive Economic Partnership (RCEP) is the world’s biggest free trade agreement. Companies – whether they be local or foreign-invested – in the GBA stand to benefit hugely from the intensification of cooperation between China and the ASEAN region.
Increasing Supply Chain Resilience: How to Better Weather the Storm of Disruptions
The pandemic has laid bare the vulnerabilities of global supply chains, and brought to the fore the symbiotic, interdependent relationship between upstream and downstream players. What are some possible ways that can help a company better weather the storm and mitigate the risks associated with supply chain disruptions?
A Guide to Signing Electronic Employment Contracts in the Chinese Mainland
In July 2021, the Ministry of Human Resources and Social Security of China issued additional guidance on concluding electronic contracts between employers and employees, fleshing out in detail the notice issued in March 2020, which conferred legal validity on such contracts subject to certain conditions.
Further Extension of Additional VAT “Super Deduction” Policy for the Lifestyle Services Industry in China
Qualified enterprises operating in the lifestyle services sector in Mainland China will continue to enjoy a 15% “super deduction” of creditable input VAT in the current period. In order to tide businesses over the pandemic, the additional VAT “super deduction” policy for the lifestyle services industry, which was originally due to expire in December 2022, […]
Hong Kong as a Premier Global Fintech Hub: Developments in the Ecosystem
The trailblazing, going-against-the-grain spirit of fintech has swept through the financial and banking sectors, entirely reshaping the landscape of financial products and services. Against the backdrop of the COVID-19 pandemic, the fintech industry may have bucked the downward trend: 2021 saw a record number of fintech deals globally, with 5,684 deals amounting to USD$210 billion […]
Hong Kong: New Tax Concessions for Qualifying Shipping Commercial Principals
The Hong Kong government promulgated the Inland Revenue (Amendment) (Tax Concessions for Certain Shipping-related Activities) Ordinance 2022 (“the Ordinance”) on 22 July 2022, which offers tax incentives to qualifying shipping commercial principals. Under the new concessionary regime, ship agents, ship managers and ship brokers will be entitled to half-rate profits tax concessions (i.e., at 8.25 […]