Taxpayers need to consider the number of recent tax changes in Hong Kong, given the looming tax compliance season for the 2018/19 year of assessment.
The tax changes may present opportunities for taxpayers through various tax incentives, including the introduction of:
The most significant change to Hong Kong tax law, however, is the introduction of a transfer pricing ordinance that formally codified transfer pricing rules and the three-tiered transfer pricing documentation requirement. An important requirement under the new transfer pricing rules is that certain Hong Kong companies will be subject to country-by-country (CbC) reporting requirements even when not the ultimate parent company of a taxpayer reporting group.
Read a March 2019 report prepared by the KPMG member firm in Hong Kong that summarizes these changes and related administrative measures for Hong Kong corporate taxpayers
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