2021-22 Hong Kong Budget Analysis

On 24 February 2021, the Financial Secretary of Hong Kong announced the Budget for the fiscal year 2021-22. The forecast is that for the fiscal year 2020-21, there will be a deficit of around HKD 257.6 billion, and that the fiscal reserves are expected to become HKD 902.7 billion by 31 March 2021. The focus […]

Tax Deductions, Allowances & Incentives in Hong Kong

Hong Kong tax system adopts low tax rates and is relatively straightforward and features certain types of tax deductions. Further, Hong Kong does not impose value added taxes or goods and services taxes. Under the Hong Kong Inland Revenue Ordinance (“IRO”), there are however three types of taxes charged: Property Tax, which is charged on […]

The Importance of Corporate Tax Substance

In Board of Review/Tax Tribunal Case X66, several appellants brought appeals to the Board of Review (“BoR”) under section 66 of the Hong Kong Inland Revenue Ordinance (“HK IRO”). For easy reading, Case X66 described below has been limited to one appellant only but this case shows similar points regarding the importance of tax substance. […]

Mitigation-Taxes-Expats-Relocating

Mitigation of Taxes for Expats in Hong Kong

One of their major concerns of relocations to Hong Kong is taxes for expats. These expatriates are usually concerned about their individual tax position/exposures, not only in Hong Kong itself, but also in foreign tax jurisdiction(s) such as their home country. In particular, they may wonder whether there are any possible ways to mitigate their […]