RSM Tax Advisory (Hong Kong) Limited - Weekly Alert Issue No. 18 [2017]

Welcome to issue 18 [2017] of Weekly Alert covering technical development in taxation around the globe.

TAX - HONG KONG

1. Press Conference 2 May 2017 - The Gist of CIR's Speech and Major Statistics

   On 2 May 2017, the Commissioner of Inland Revenue ("CIR") gave a speech on issuance of the 2016/17 tax returns for individuals, tax treaty negotiations, automatic exchange of financial account information in tax matters ("AEOI"), property demand-side management measures; and revenue collections in the financial year 2016/17.

   The Inland Revenue Department ("IRD") issued 2.6 million tax returns for individuals for the year of assessment 2016/17 on 2 May 2017. The filing due dates for these 2016/17 tax returns are as follows:

   Due Date For individuals 2 June 2017 For sole proprietors 2 August 2017 An automatic extension of 1 month will be granted to taxpayers who file their tax returns through the Internet.

   Up to 31 March 2017, Hong Kong has signed Comprehensive Double Taxation Agreements ("CDTAs") with 37 jurisdictions and concluded CDTA negotiations with 4 countries.

   To implement the arrangement for AEOI more effectively and to respond to latest international developments, the Government introduced the Inland Revenue (Amendment) (No. 3) Bill 2017 into the Legislative Council in March 2017 with a proposed effective date on 1 July 2017. The IRD will provide full support to the Legislative Council and keep on expanding the network of AEOI.

   In order to prevent local investors from acquiring multiple residential properties under a single instrument, the Government has introduced new property demand-side management measure which took effect from 12 April 2017. The Government will introduce the relevant legislative amendments into the Legislative Council as soon as possible.

   In the year 2016/17, the IRD collected HK$290.2 billion which is HK$1.1 billion below that of last year. The forecast total revenue collection for the coming year is HK$286 billion.

   Press Conference 2 May 2017 - The Gist of CIR's Speech and Major Statistics

   http://www.ird.gov.hk/eng/pdf/2017_cir_speech_e.pdf

   TAX - PRC

1. Increase the Percentage of Extra Deductions of Research and Development Costs for Medium and Small-sized Scientific and Technological Enterprises

   (关于提高科技型中小企业研究开发费用税前加计扣除比例的通知)

   The Ministry of Finance ("MOF"), State Administration of Taxation ("SAT") and Ministry of Science and Technology have jointly issued the "Circular on Increasing the Percentage of Extra...