Hong Kong Tax Updates – Two-Tier Profits Tax System Effective From 2018/19 Onwards

21 March 2018, the Inland Revenue (Amendment) (No.7) Bill 2017 -TheTwo-tier profits tax system passed its third reading in the Legislative Council. Commencing from the year of assessment 2018/19, tax relief will be provided to small and medium-sized enterprises by the two-tier profits tax system. Each group of connected entities can nominate one enterprise to enjoy such tax relief.

We summarize the relief for corporations below:

‍

Under the situation of corporations, “connected entities” means

(a) one of the entity has direct or indirect control over another;

(b) the entities are under common control directly or indirectly.

“Control” means

i) owns or controls more than 50% in aggregate of the issued share capital; OR

ii) is entitled to exercise or control the exercise of more than 50% in aggregate of the voting rights at general meeting; OR

iii) is entitled to more than 50% in aggregate of the profits.

With the introduction of more tax relief, investments in Hong Kong as small and medium enterprises will bring more benefits and returns to investors.

For further details, please contact your Portcullis Relationship Manager or Ms Pisces Wong, Senior Accounts and Tax Manager at:-

Portcullis Tax Services (HK) Limited
Tel:+852 3173 1046
Email: Pisces.Wong@portcullis.co

‍

Hong Kong Tax Updates – Two-Tier Profits Tax System Effective From 2018/19 Onwards

2017年稅務(修訂)(第7號)條例草案》-利得稅兩級制於2018年3月21日在香港立法會經三讀通過。由2018/19 課稅年度起, 此利得稅兩級制將提供予中小型企業。有關連企業可提名一家企業受惠。

我們把該兩級稅制有關企業的部份總結如下：

‍

在企業的情況下, 「有關連企業」指–

(a)一家企業直接或間接控制另一家企業;

(b) 企業皆直接或間接受另一企業或個人控制。

「控制」指–

i) 擁有或操控整體多於50%的已發行股本; 或

ii) 於股東大會操控整體多於50%的投票權; 或

iii) 獲取整體利潤的50%。

新的稅制將為投資於香港的中小企帶來更多新機遇。

欲知更多, 歡迎與我們的資深會計及稅務經理(黃英妍)聯絡。以下為其聯絡方法：

Portcullis Tax Services (HK) Limited
Tel:+852 3173 1046
Email: Pisces.Wong@portcullis.co