TAX – Hong Kong

1. LCQ22: Introduction of New Ad Valorem Stamp Duty

On 8 February 2017, the Secretary for Transport and Housing, Professor Anthony Cheung Bing-leung, in the Legislative Council replied to the question raised by Hon Jeffrey Lam in regard to the introduction of new demand-side management measure on residential property transactions i.e. to increase the ad valorem stamp duty chargeable on residential property transactions to a new flat rate of 15% from 5 November 2016.

According to the Inland Revenue Department's ("IRD's") records, the number of residential property transactions subject to the doubled ad valorem stamp study or the new 15% flat rate in December 2016 and January 2017 were 376 and 406 respectively; over 80% drop in the transaction number as compared with the monthly average of about 2,350 cases from September to November 2016. There have been signs of cooling off in the residential property market after the announcement of the new demand-side management measure.

The Government will continue to closely monitor the property market movements and the ever-changing external conditions. When considering whether the measure should be maintained or adjusted, the Government will make reference to a series of indicators, including but not limited to property prices, home purchase affordability ratio, transaction volume, flat supply, changes in local and global economies.

Press Release

2. List of Qualifying Debt Instruments (as at 31 December 2016)

On 3 February 2017, the IRD released lists of debt instruments eligible for Profits Tax Concession and long term debt instruments eligible for Profits Tax Exemption (as at 31 December 2016).

Listed debt instruments are intended to be eligible for profits tax concession (i.e. chargeable at 50% of the normal profits tax rate) in accordance with Section14A of the Inland Revenue Ordinance. Listed long term debt instruments are intended to be eligible for profits tax exemption in accordance with Section 26A of the Inland Revenue Ordinance as from the year of assessment 2003/04.

Press Release


1. Implementation of Self-Declaration on Individual Income Tax for Individuals with Annual Income of More Than RMB120,000 in Shanghai for 2016

(上海市地方税务局关于开展 2016年度本市年所得 12万元以上个人自行纳税申报工作的通知 )

On 4 February 2017, Shanghai Local Tax Bureau announced that individuals in Shanghai with annual income over RMB120,000 in 2016 (excluding those who have no domicile in China and have resided in China for less than one year) should file their individual income tax returns by 31 March 2017, regardless of whether the tax payment of the income has been made or not.

沪地税函〔2017 4

2. Individual Income Tax Filing Affairs for Sole Proprietors and Investors of Self-owned and Partnership Enterprises in Shanghai for 2016

(上海市地方税务局关于做好 2016年度本市个体工商户及个人独资企业和合伙企业投资者个人所得税汇算清缴工作的通知 )

On 4 February 2017, Shanghai Local Tax Bureau announced that sole proprietors and investors of self-owned and partnership enterprises in Shanghai which are taxed according to their financial statements should file the relevant tax returns for 2016 by 31 March 2017. Tax bureau would complete their tax assessment work by 17 April 2017.

沪地税函〔2017 5

TAX – International

1. Council of European Union Adopts Directive on Access to Beneficial Ownership Information

The Council of the European Union has adopted a directive granting access for tax authorities to information held by authorities responsible for the prevention of money laundering.

The directive will apply from 1 January 2018, which will require Member States to provide access to information on the beneficial ownership of companies and enable tax authorities to access that information in monitoring the proper application of rules on the automatic exchange of tax information.

Press Release

2. Taiwan Amends its Tax Laws to Facilitate the Implementation of Automatic Exchange of Tax Information

The Taiwan Executive Yuan has passed the amended tax laws to facilitate the implementation of automatic exchange of tax information (including financial information) in accordance with the international practice and the Organisation for Economic Co-operation and Development's Common Reporting Standard. The amended tax laws will be passed to the Taiwan Legislative Yuan for review and enactment.

行政院院會通過稅捐稽徵法第 5條之1、第 46條之1修正草案

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