China Updates- Counter-Terrorism Law

In December 2015, China introduced a new Counter-Terrorism Law, effective from 1st January 2016. Two requirements in the draft have been dropped, namely that ISPs should relocate their related servers and domestic user data to China and allow the Chinese government a backdoor into those servers and hence the data contained therein.

Retained provisions, however, include the requirement that encryption keys be made available to the Chinese government and assistance should be provided by the ISPs to monitor content.

Whether the dropped provisions are a real concession given the ambit of those retained is a matter of debate.

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Primasia will post the updates of Hong Kong and China from time to time. Follow us on our Website/ Blogger/ LinkedIn and stay tunned for our updates!

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Teresa Tam - Email 

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Primasia Corporate Services Limited

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Suite 1106-08, 11/F., Tai Yau Building, No. 181 Johnston Road, Wanchai, Hong Kong

Hong Kong Updates- Personal Data Protection & Taxation – Group Loss Relief?

Personal Data Protection

A further conviction has been handed down (end-December 2015) for breaches of the direct marketing provisions under the Hong Kong Personal Data (Privacy) Ordinance (PDPO), following the first three such convictions in previous months. Although the fine was nominal (at HK$5,000) and although one of the accused was convicted, the case was significant in that it was the first conviction against an individual for unauthorised  transfer of personal data to a third party for use in direct marketing.

Taxation – Group Loss Relief?

The Hong Kong Inland Revenue Department (IRD) has issued a guidance note about the tax treatment of profits in a court-free amalgamation, a procedure introduced by the new Companies Ordinance which became effective in 2014. No amendments have yet been made to the corresponding (Inland Revenue) ordinance to cover this, and nor has Hong Kong historically given group relief for losses. The guidance note goes some way to removing the uncertainties this situation has produced.

In (very) brief, losses in a company may be carried forward into the merged or amalgamated entity provided that the IRD are satisfied that the intention behind the amalgamation is not to obtain the loss relief.

===================================================================

Need more information?

Please contact:

John Barclay -Email

Teresa Tam - Email 

--------------------------

Follow us on:

Website: Primasia HK / Primasia China

LinkedIn: Primasia

--------------------------

Primasia Corporate Services Limited

Tel: +852 2882 2088

Suite 1106-08, 11/F., Tai Yau Building, No. 181 Johnston Road, Wanchai, Hong Kong