Hong Kong News

Revenue bill passage welcomed

Secretary for Financial Services & the Treasury Christopher Hui welcomed the passage of the Inland Revenue (Amendment) (Miscellaneous Provisions) Bill 2021 by the Legislative Council today. Mr Hui said: “The ordinance codifies the tax treatment with regard to qualifying amalgamations and the transfer or succession of specified assets, offering better clarity and certainty of the relevant matters.

“It would also provide the legal basis to enable more businesses to voluntarily file tax returns, including financial statements, electronically, with the ultimate goal of implementing electronic filing of profits tax returns through the Business Tax Portal.” Mr Hui noted the enhancement of the foreign tax deduction regime under the ordinance will reduce the tax liability of Hong Kong branches of foreign corporations, in particular foreign banks, and holders of intellectual property. It would help foster a more favourable business environment, particularly reinforcing Hong Kong’s attractiveness as a banking location and promoting the city as a research and development hub, he added. The ordinance will come into operation upon gazettal on June 11. Amendments in relation to foreign tax deduction will take effect from the year of assessment 2021/22.

CE addresses business community

Chief Executive Carrie Lam today addressed more than 200 members of the local and international business community at a Hong Kong General Chamber of Commerce webinar under its 160th anniversary distinguished speakers series. Mrs Lam highlighted the tremendous opportunities presented by the 14th Five-Year Plan and encouraged businesses to contribute to and benefit from the national blueprint and action agenda. She took the webinar participants through the plan’s content that concerned Hong Kong, saying that the Hong Kong and Macau chapter contained, first and foremost, the fundamental principles that would contribute to the long-term prosperity and stability of the two special administrative regions.

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New telecoms law to table LegCo

The Government will table the Telecommunications (Registration of SIM Cards) Regulation at the Legislative Council for negative vetting on June 9. The regulation, gazetted today, seeks to facilitate the prevention and detection of crimes involving the use of pre-paid subscriber identity module (SIM) cards. The relevant real-name registration programme will launch on September 1. Telecommunications operators are required to put in place the registration infrastructure and back-end systems for real-name registration in around 180 days from that date.

The next phase will start on March 1 next year. For all new pre-paid SIM cards available for sale in the market and new SIM service plans effective from that date, real-name registration must be completed before activation. For existing pre-paid SIM card users, they have to finish real-name registration with operators in the 360-day grace period ending February 23, 2023.

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Key Economic Indicators

  • Overall consumer prices in September fell 2.2% year-on-year, larger than the corresponding decrease of 0.4% in August. The increase was mainly due to the rising cost for meals bought away from home and the upward adjustment in public housing rentals. Looking ahead, overall inflationary pressures should stay mild in the rest of the year as global and local economic conditions remain weak amid the threat of COVID-19.
  • The seasonally adjusted unemployment rate rose to 6.4% (Jul – Sep) while the underemployment rate remained unchanged at 3.8%. With the weak overall economic situation amid the evolving global pandemic, the labor market will remain under pressure in the near term.

Commitment to medical research

The HKSAR Government is committed to supporting research on a wide spectrum of health issues with a view to safeguarding public health and curing diseases. Speaking at the HKU-Pasteur Research Pole 20th Anniversary Opening Symposium (Oct 21), Chief Executive Carrie Lam said the tripartite partnership with academia and industry will create an open platform for multi-sectoral collaboration and facilitate the translation of biomedical innovations into commercial value and industrial impact. It will also contribute to Hong Kong’s transformation into an international innovation and technology hub. In the area of medical research and to combat COVID-19, the Government has allocated nearly US$35 million under the Health and Medical Research Fund in support of some 50 COVID-19 research studies. Separately, the Innovation and Technology Fund is supporting nearly 60 trial projects focused on detection, diagnosis and surveillance of the COVID-19 virus. 

Pilot program for Hong Kong lawyers to practice in Greater Bay Area

Practicing solicitors and barristers in Hong Kong can practice law in nine cities in the Guangdong-Hong Kong-Macao Greater Bay Area after obtaining their Mainland practice qualifications under a new pilot program announced by the State Council General Office (Oct 23). Welcoming the program, Secretary for Justice Teresa Cheng said the arrangement will foster the mutually complementary co-operation relationship between Hong Kong and Guangdong. She encouraged practicing solicitors and barristers to capitalize on the development of the Greater Bay Area and further enhance Hong Kong’s legal service.

FinTech Week goes virtual in November

Hong Kong FinTech Week 2020 will take place virtually from Nov 2-6 to allow global fintech businesses and experts from around the world to participate. The week-long event, themed “Humanizing FinTech”, will explore how fintech can unlock the power of financial services to drive positive impacts for society and business. The event will comprise five channels, focusing on the resilience and development of Hong Kong and the Guangdong-Hong Kong-Macao Greater Bay Area, future fintech trends and finance sector growth opportunities. It will also provide a reinvented virtual event experience with artificial intelligence-powered matchmaking, live chat networking opportunities and Hong Kong cultural side events. Co-organized by Invest Hong Kong, the Hong Kong Monetary Authority, the Securities and Futures Commission and the Insurance Authority, Hong Kong FinTech Week is expected to attract more than 25,000 participants from over 70 economies and 350 speakers, along with more than 500 exhibitors and over 30 delegations.

Hong Kong well-positioned as green finance hub

Hong Kong, with its clear and compelling advantages, is well-positioned to be a green finance hub, said Chief Executive Carrie Lam at an online symposium (Oct 23). The Hong Kong Special Administrative Region (HKSAR) Government has been implementing measures for the city to offer the needed financial services and capture the available opportunities. These included the launch of Green Bond Grant Scheme and the establishment of the Hong Kong Green Finance Association in 2018, and the launch of the green bond issuance program in May 2019. Later this year, the Hong Kong Stock Exchange will launch the Sustainable and Green Exchange as a first-of-its kind central hub in Asia for data and information on sustainable and green-finance investment.

Hong Kong fashion shines in New York


Hong Kong’s vibrant fashion and style took to the runway at New York Fashion Week (Feb 6), presenting 36 unique creations by three leading Hong Kong fashion brands – Harrison Wong, Heaven Please+ and Sun=Sen. Aside from the Fashion Hong Kong show, industry elites and style influencers learned more about the latest in Hong Kong’s fashion at the after-show event – Fashion Hong Kong Night. To further promote the city’s fashion brands and foster exchange and collaboration between Hong Kong designers and international buyers, emerging Hong Kong fashion accessories and apparel brands are featured in Fashion Hong Kong Showroom (Feb 4 – Mar 5).

Anti-epidemic funding welcomed


Hong Kong’s Chief Executive, Mrs Carrie Lam, welcomed the passage of the funding application for the Anti-epidemic Fund by the Legislative Council (LegCo) Finance Committee (Feb 21). Mrs Lam conveyed her heartfelt thanks to LegCo Members for their support and approval of the funding application for the HK$30 billion (US$3.8 billion) Anti-epidemic Fund to achieve the objective of fighting the COVID-19 virus. “The Government will continue to assess the impact of the epidemic on society and listen to comments from all sectors, while introducing more support measures as necessary,” she said.

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