RSM Tax Advisory (Hong Kong) Limited - Weekly Alert Issue No. 2 [2017]

Welcome to issue 2 [2017] of Weekly Alert covering technical development in taxation around the globe.

TAX - Hong Kong

1. Government Launches Consultation on Legislative Proposals to Enhance Regulatory Regime for Combating Money Laundering and Terrorist Financing

   On 6 January 2017, the Financial Services and the Treasury Bureau launched the following two consultation exercises:

   Public consultation on a proposal to amend the Companies Ordinance to improve the beneficial ownership transparency for companies incorporated in Hong Kong; and Stakeholder consultation to seek views from affected industries on a proposal to amend the Anti-Money Laundering and Counter-Terrorist Financing (Financial Institutions) Ordinance, requiring designated non-financial businesses and professions to conduct customer due diligence when they engage in specified transactions. The intention of the two legislative proposals is to bring Hong Kong's regulatory regime up to date in line with international requirements, as promulgated by the Financial Action Task Force.

   Both consultations will last for two months, under 5 March 2017.

   Press Release http://www.info.gov.hk/gia/general/201701/06/P2017010600805.htm

   Proposal on Enhancing Transparency of Beneficial Ownership of Hong Kong Companies http://www.fstb.gov.hk/fsb/ppr/consult/consult_etbo.htm

   Proposal on Enhancing Anti-Money Laundering Regulation of Designated Non-Financial Businesses and Professions http://www.fstb.gov.hk/fsb/ppr/consult/consult_eaml.htm

2. Change of Postal Address of Taxpayers

   The Inland Revenue Department ("IRD") will issue the "Tax Return - Individuals" (BIR60) on 2 May 2017.

   Taxpayers have to notify the IRD of the change of their postal address not later than 2 March 2017 to ensure that the tax returns can be sent to their new address.

   Change of Postal Address of Taxpayers http://www.ird.gov.hk/eng/pdf/tp_change_address_e_012017.pdf

   TAX - PRC

1. Circular on the Import Tax Policy for Supporting the Technological Innovation

   (关于"十三五"期间支持科技创新进口税收政策的通知)

   On 27 December 2016, the Ministry of Finance ("MOF"), General Administration of Customs ("GAC") and State Administration of Taxation ("SAT") jointly issued the ''Circular on the Import Tax Policy for Supporting the Technology Innovation during the 13th Five-Year Period''.

   According to the Circular, the importation of equipment, instruments and other teaching materials which cannot be manufactured in China and are imported by scientific research...