China Updates- VAT reforms

China continues to extend its VAT reforms.

Among other changes with effect from 1st January 2014, railway transportation and postal services are included in the reforms. The exemption for offshore outsourcing has been extended to 2018, translation services will be subject to 6% VAT, and international freight charges will be exempt (for general tax payers).

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Hong Kong Updates- revised guidelines on directors' duties

The Companies Registry has issued revised guidelines on directors' duties, to reflect the changes in the Companies Ordinance. The guidelines, incorporating previous descriptions of directors' do's and don'ts, can be found here:

http://www.cr.gov.hk/en/companies_ordinance/docs/Guide_DirDuties-e.pdf

but the key changes is in the codification of directors' duty of care, skill and diligence.

Until the change, Hong Kong has adopted the subjective test in determining the standard of care, skill and diligence expected of directors; i.e. a director does not have to exhibit a greater degree of care and skill than might reasonably be expected from a person of his knowledge or experience. This is different from the standard developed in a number of other common law jurisdictions, where case law or statute have developed a hybrid standard of directors' responsibility.