1999-2000 Annual Report, Inland Revenue Department
(Text Only)

Legislative Amendments

 

The following Ordinances enacted during the year were concerned with matters administered by the Department.

Tax Reserve Certificates (Amendment) Ordinance 1999 (24 of 1999)

The purposes of this Ordinance were to introduce the Electronic Tax Reserve Certificates Scheme as from 1 September 1999 and to provide that the interest on certificates relating to objections and appeals shall be calculated at moving rates.

Companies (Amendment) Ordinance 1999 (30 of 1999)

This Ordinance introduced a new procedure for deregistering private companies. Consequential amendments were made to the Inland Revenue Ordinance to empower the Commissioner, on a request made by the person applying for deregistration, to issue a written notice stating that he has no objection to the company being deregistered. The fee payable in respect of such a request is $350.

Revenue Ordinance 1999 (44 of 1999)

This Ordinance gave effect to the 1999-2000 Budget proposals, including:

1. Betting Duty

To increase the rates of duties as below：
Type of Bets Previous Revised Effective Date
Exotic bets 18% 19% 1 September 1999
Lottery proceeds 20% 25% 1 April 1999

2. Business Registration

To provide for the issue of 3-year certificates.

3. Estate Duty

To exempt from estate duty the moneys payable under the interests in a policy of insurance effected on the life of a deceased person..

4. Profits Tax

To reduce the minimum denomination for newly issued debt instruments in respect of which interests and trading profits are subject to tax at concessionary rates from $500,000 to $50,000.

5. Stamp Duty

  1. To increase the rates on property transactions as below：

    2. Properties Value Previous Revised
    $3,000,001 - $4,000,000 2.00% 2.25%
    $4,000,001 - $6,000,000 2.75% 3.00%
    Over $6,000,000 2.75% 3.75%

  2. To allow deferring the payment of stamp duty due on the purchase of a residential property until the assignment is executed.

  3. To exempt from payment of stamp duty on a sale and purchase agreement which is subsequently cancelled for whatever reason other than a sub-sale, nomination, or a replacement of the agreement upon the direction or request of the purchaser.

  4. To remove the requirement that the borrowed stocks have to be returned to the lender within 12 months after the stocks are borrowed under the stock borrowing and lending relief and to simplify the procedures for claiming exemption.

  5. To simplify the handling procedures in respect of stock transactions effected through the Stock Exchange of Hong Kong Limited.

Provision of Municipal Services (Reorganization) Ordinance (78 of 1999)

This Ordinance amended the Inland Revenue Ordinance, the Business Registration Ordinance, the Estate Duty Ordinance and the Stamp Duty Ordinance, by repealing any reference to the “Urban Council” and the “Regional Council”.

Stamp Duty (Amendment) Ordinance 2000 (5 of 2000)

The purposes of this Ordinance were to revise the adjudication fee payable, specify the instruments in respect of which the adjudication fee is not payable and simplify the procedure for amending the amount of the adjudication fee payable.

Exchanges and Clearing Houses (Merger) Ordinance (12 of 2000)

This Ordinance amended certain provisions in the Stamp Duty Ordinance by repealing "broker" and substituting "exchange participant" as from 6 March 2000.

Specification of Arrangements (Government of the Russian Federation concerning Air Services) (Double Taxation) Order (Legal Notice No. 123 of 1999)

This Order specified Article 12 of the Agreement between the Government of the Hong Kong and the Government of the Russian Federation concerning Air Services done at Hong Kong on 22 January 1999 as a double taxation relief arrangement.

Legal Notices to fix the rate of interest payable on Tax Reserve Certificates

Legal Notice Number Periods in force Annual rate of interest
92 of 1999 7April 1999 to 2 May 1999 5.2083%
111 of 1999 3 May 1999 to 6 June 1999 4.7083%
145 of 1999 7 June 1999 to 5 September 1999 4.5417%
220 of 1999 6 September 1999 to 3 October 1999 4.7917%
246 of 1999 4 October 1999 to 31 October 1999 4.6250%
267 of 1999 1 November 1999 to 5 December 1999 4.7917%
305 of 1999 6 December 1999 to 2 January 2000 4.8750%
332 of 1999 3 January 2000 to 7 February 2000 4.6667%
41 of 2000 8 February 2000 to 5 March 2000 4.5625%
54 of 2000 6 March 2000 to 2 April 2000 4.7708%

 

 

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(Last updated/reviewed : August 30, 2001))