Proposed New Stock Exchange
A public consultation on a potential new board has been
announced by the Stock Exchange of Hong Kong. This board would (likely) cover:
(a) "pre-profit" companies;
(b) companies with non-standard governance procedures; and
(c) Mainland Chinese companies wishing to secondarily list
in Hong Kong.
Tax
In a recent IRD Board of Review case, it was held that
trading profits derived by a Hong Kong company under an import processing
arrangement with its wholly owned subsidiary were of “Hong Kong source” and
therefore taxable in Hong Kong. The Board further decided that, in the absence
of a primary transfer pricing adjustment made by a tax treaty partner, no
unilateral adjustment could be made (to reduce the taxpayer's Kong sourced
profits).
BEPS
Hong Kong, represented by China, signed the multilateral (67
country) OECD BEPS convention (to prevent Base Erosion and Profit Shifting).
Arbitration
The automatic opt-in applicable to domestic arbitration
under the Arbitration Ordinance expired on 1st June, 2017.
Employment
Hong Kong's Chief outgoing Executive announced a framework
towards regulating standard working hours. The proposals include:
- requiring that employers put in place a written employment contract, which must include the employee's working hours and overtime remuneration arrangements, for employees with a monthly wage of HK$11,000 or below, and
- mandating the overtime remuneration for such employees.
However, with a new Chief Executive, this and other
proposals (such as ending the clawback of employers' contributions from
employees' MPF funds) are put on the back burner.
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Need more information?
Please contact:
John Barclay -Email
Teresa Tam - Email
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Primasia Corporate Services Limited
Tel: +852 2882 2088
Suite 1106-08, 11/F., Tai Yau Building, No. 181 Johnston Road, Wanchai, Hong Kong
