• Service: Tax, Global Indirect Tax, Global Mobility Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 2/27/2014

Hong Kong - Tax provisions in budget 2014-2015 

February 27:  Hong Kong’s budget 2014-2015, presented 26 February 2014, contains tax proposals that would affect the financial services sector. Among these are measures that would:
  • Provide for legislation to allow private equity funds to enjoy the tax exemption for offshore funds, with a consultation to begin in March 2014 on proposals to introduce an open-ended fund company structure
  • Propose a review of the requirements under the Inland Revenue Ordinance for interest deductions in the taxation of corporate treasury activities and to clarify the criteria for such deductions
  • Allow an additional “iBond” issue of up to HKD 10 billion with a maturity of three years, targeted for Hong Kong residents
  • Waive the stamp duty for the trading of all exchange traded funds

The budget also proposes certain “one-off relief” measures primarily affecting individual taxpayers.

Read reports on the tax provisions posted on a budget 2014-2015 webpage and prepared by the KPMG member firm in Hong Kong.

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