What's New

Stamp Duty statistics (SSD / BSD / DSD) have been uploaded to the Department’s website.

Starting from the year of assessment 2019/20, taxpayers can claim deduction for (a) qualifying premiums paid under Voluntary Health Insurance Scheme (VHIS) policies; and (b) qualifying annuity premiums paid under qualifying deferred annuity policies and tax deductible MPF voluntary contributions (TVC) paid.  The following two Departmental Interpretation and Practice Notes are issued today to explain the conditions for deduction of the premiums/ contributions paid and the Department’s interpretation and practices on the provisions relating to the new concessionary deductions:

(1) Departmental Interpretation and Practice Notes No. 56  - Concessionary Deductions: Sections 26H to 26M Health Insurance Premiums; and

(2) Departmental Interpretation and Practice Notes No. 57  - Concessionary Deductions: Sections 26N to 26U Annuity Premiums and MPF Voluntary Contributions.

Starting from the year of assessment 2018/19, capital expenditure incurred for procuring environmental protection installation is deducted in full in one year instead of over five years. The Departmental Interpretation and Practice Notes No. 5 (Revised) has been updated to set out the Department’s interpretation and practice on the provisions relating to the accelerated tax deduction. The part relating to tax deduction for research and development (“R&D”) expenditure is covered in the Departmental Interpretation and Practice Notes No. 55. 

Taxpayers can claim enhanced tax deduction for R&D expenditure incurred on or after 1 April 2018 in respect of qualifying R&D activities. The Departmental Interpretation and Practice Notes No. 55  explains how a taxpayer can be entitled to the 100% tax deduction or enhanced tax deduction for R&D expenditure.

Stamp Duty statistics (SSD / BSD / DSD) have been uploaded to the Department’s website.

The Inland Revenue (Amendment) (No. 2) Ordinance 2019 was gazetted on 1 March 2019. The amendments relating to AEOI will take effect from 1 January 2020. A new webpage relating to mandatory provident fund schemes and occupational retirement schemes has been created. With the increase in the number of reportable jurisdictions from the current 75 to 126, the webpage for reportable jurisdictions has also been updated. In addition, some guidelines for reporting financial institutions that is in the process of being liquidated and a new FAQ 31 setting out the required due diligence procedures for private investment companies have been uploaded onto the Department’s website.

Stamp Duty statistics (SSD / BSD / DSD) have been uploaded to the Department’s website.

Stamp Duty statistics (SSD / BSD / DSD) have been uploaded to the Department’s website.

Under section 58E(2) of the Inland Revenue Ordinance, a Hong Kong ultimate parent entity may voluntarily file a country-by-country (CbC) return in respect of an accounting period beginning on or after 1 January 2016 but before 1 January 2018 by the filing deadline, which is the date on which a period of 12 months after the end of the accounting period expires. Effective from 1 April 2019, the Department will not accept voluntary filing of a CbC Return for an accounting period ended on or before 31 March 2018. Pursuant to bilateral exchange arrangements, Hong Kong should exchange CbC Reports with treaty partners within 18 months after the end of an accounting period commencing in 2016, or 15 months after the end of an accounting period commencing in 2017.