KPMG China’s Post

Hong Kong’s tax system is a key factor driving its status as a prime destination for business activities. Hong Kong has a two-tier tax regime with low tax rates, and relatively easily understood legislation, making it beneficial to small and medium-sized enterprises. Read More: https://lnkd.in/gRDFEj_s #HongKongTaxSystem #TaxIncentives #GeneratingProfitsinHongKong  #OffshorevsOnshore #BusinessOperations #TaxReturns

#HongKong is officially off the EU's tax non-cooperative jurisdictions list as of 20 Feb 2024! 🎉 Thanks to the Foreign-Sourced Income Exemption (FSIE) regime introduced in 2023, HK aligns with global tax standards, addressing #EU's tax cooperation concerns. 🏦💼 This move boosts HK's global business appeal and sets the stage for more transparent international #tax relations. #TaxReform #GlobalFinance #InvestInHK

Deloitte China’s National Tax Technical Centre has just released its Hong Kong Year in Review 2023, mapping the contours of major changes in Hong Kong’s tax landscape over the past 12 months. The Year in Review covers enacted legislation including Hong Kong’s refined foreign-sourced income exemption (FSIE) regime, which came into effect on 1 January 2024, and tax concessions for family offices. It also features major bills pending passage, proposed new tax regimes, court and board of review cases, Inland Revenue Department administrative measures and guidance, and international tax developments. Read more. #Tax #HongKong #FSIE #FamilyOffices http://spr.ly/6044RgO5y

The Global Anti-Base Erosion (GloBE) Rules are shaking up the world of international taxation! Designed to ensure large multinational enterprises pay at least 15% tax on their profits in every jurisdiction they operate, these rules are set to curb tax base erosion and profit shifting. In this regard, Singapore will be implementing the Income Inclusion Rule and a domestic minimum top-up tax from 1 January 2025. Are you ready to navigate the new tax landscape? To find out more, visit: https://bit.ly/3WvkDYX Stay updated on the latest key tax news (https://lnkd.in/gsmxfG8V) when you subscribe to the Tax Channel: https://t.me/sctp_tax_hub #GloBERules #TaxRevolution #OECD #GlobalBusiness #TaxStrategy #SCTP #TaxUpdates

On Tuesday (20 February 2024), the European Union (EU) announced it has removed Hong Kong from its watchlist on tax cooperation, a welcome move that affirms HKSAR’s commitment to comply with international tax standards. The removal from the EU watchlist is a result of Hong Kong’s most recent refinements to its foreign-sourced income exemption (FSIE) regime, which expanded the scope of foreign-sourced disposal gains to cover all types of assets and came into effect on 1 January. Read more in our latest HK Tax Newsflash. #Tax #EU #FSIE http://spr.ly/6045netCX

Introducing Section 10L, a new tax provision targeting foreign-sourced disposal gains received in Singapore. Besides ensuring that multinational entities lacking economic substance here are taxed appropriately, this reinforces regulatory compliance and supports local economic growth while curbing tax avoidance. Unlock essential insights on Section 10L to understand the intricacies of tax treatment for gains or losses from foreign asset sales: https://lnkd.in/gnrc_V3h #Tax #Taxation #RegulatoryCompliance #BDOsg

🖥 How can a commonly adopted tax calculation method in China result in an effective tax rate of 210%? Milano Fang and Tim Zeng, M&A tax partners at KPMG China, explain an increasingly controversial issue for international investors in a free webinar on the taxation of indirect share transfers. http://spr.ly/6040bt0lw #internationaltaxreview #tax #internationaltax #chinatax

In addition to being an active player in international tax cooperation and countering cross-border #tax evasion, Hong Kong has introduced a range of tax concessions and measures in 2023 to sharpen its competitive edge and attract more businesses and investments, with various tax and related initiatives in the pipeline to anchor strategic industries. Find out more about Hong Kong’s key tax updates in 2023 and upcoming tax developments in 2024: https://lnkd.in/gJp47gEi #PwC #PwCHK #Taxation #ProfitsTax #SalariesTax #TaxConcessions #TaxDeduction #TaxTreaty

On 21 December 2023, the HKSAR Government published a consultation paper on the implementation of the global minimum #tax and domestic minimum top-up tax in Hong Kong (HKMTT). The consultation is open until 20 March 2024, with the expectation that draft legislation will be published in the second half of 2024. It is proposed that the global minimum tax and the HKMTT will take effect for a fiscal year beginning on or after 1 January 2025. Find out more about our observations: https://lnkd.in/gBaK4PuQ   #PwC #PwCHK #OECD #BEPS

This is a good piece. However, it makes one (often underlooked) pathway i.e., linking digital taxation debates to trade Negotiations in Free Trade Agreements, including the World Trade Organisation. Discussions in Trade negotiations have the potential to either undermine or promote taxation of the digital firms. The current tug-of-war in the WTO on whether to renew or not the E-Commerce Moratorium (which, prevents WTO members from imposing customs duties on electronic transmissions) is one of those efforts. Other critical aspects like data flow governance, source code disclosure, and localisation aspects all have a bearing on the taxation of digital firms, depending on how they are crafted. I hope the African Tax Administration Forum (ATAF) looks into this nexus with time. The upcoming World Trade Organization #mc13 is a good point to begin with.