Key tax developments
Key tax developments
Significant tax developments over the past few years, as well as developments that may be implemented in the future
Significant tax developments over the years, and those that may soon be implemented
Hong Kong Budget Summary
2019-2020
Key tax developments
In her second policy address in October 2018, Chief Executive Carrie Lam continued to take a more proactive view on tax and the use of tax incentives to enhance Hong Kong’s position as an international finance centre and as a major platform for capital raising and financing. The tax developments, some of which are illustrated below, helped diversify Hong Kong’s economy and remove a few of the competitive disadvantages the city faces in attracting and retaining business.
* Proposal by the Financial Services Development Council, Hong Kong
** Proposed bill subject to Legislative Council’s approval
*** Proposal by KPMG
For further details, please access our Tax Alerts
Enacted
- Islamic bonds (2013)
- Offshore funds exemption (2015)
- Taxation of corporate treasury centres (2016)
- Automatic exchange of information (2016)
- Tax treatment of regulatory capital securities (2016)
- Taxation of aircraft leasing activities (2017)
- Two-tiered tax system (2018)
- Transfer pricing legislation (2018)
- Tax exemption for open-ended fund companies (2018)
- R&D enhanced deduction (2018)
Not yet enacted
- Group tax loss relief*
- Vacancy tax on properties**
- Regional headquarters incentives***
* Proposal by the Financial Services Development Council, Hong Kong
** Proposed bill subject to Legislative Council’s approval
*** Proposal by KPMG
For further details, please access our Tax Alerts
© 2019 KPMG Tax Services Limited, a Hong Kong limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.
© 2019 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.