Transitioning Away from LIBOR - What Corporates Need to Know
The London Inter-Bank Offered Rate (LIBOR) – the most widely used interest rate benchmark in the world to date – will be discontinued as early as 2021 for major currencies such as the British Pound and the US Dollar.
At a webinar on 9 June, Jenny Huang and Jasmine Lee, both Partners at EY, detailed the major implications of these changes in relation to areas including contract management, interest rates and accounting practices. They also shared tips on how corporates can prepare for the impending changes in light of the global movement towards alternative reference rates.
2021/06/09
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Filing a Tax Appeal – What You Need to Know
Taxpayers who appeal their tax assessment before the Board of Review may be aware that they could be ordered to pay legal expenses of not more than HK$25,000. But the actual cost of appeal could be much higher than that, as both appellants and the Inland Revenue Department have the right to challenge the Board’s decision and take their cases as far as the Court of Final Appeal.
At a webinar on 22 January, Wilson Cheng, Partner at EY, explained the procedure in lodging an appeal with the Board of Review, and shared a number of cases to help members better understand the Board’s rulings. He explained that the total cost of appeal could exceed HK$10 million if a case ended up in the highest court. Companies were advised to ensure they had the financial wherewithal to do so before filing a tax appeal.
2021/01/22
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Taxing the Digital Economy: Hong Kong’s Approach
Will maintaining a datacentre or server in Hong Kong expose overseas enterprises to profits tax in the SAR? The answer is that it depends on the circumstances, so businesses should ensure that they are aware of the updated practice note no 39 (DIPN 39). At a webinar on 7 July, Jo-An Yee, Partner at EY Tax Services, addressed the question of what could make companies liable to profits tax in Hong Kong referring to DIPN 39, which covers the digital economy, e-commerce and digital assets. Yee was joined by Kathy Kun, Senior Manager at EY, who provided further insights on DIPN 39 and discussed the tax treatment of proceeds from Initial Coin Offerings.
2020/07/07
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Tax Deductions for R&D Expenditure: An Overview of DIPN55
Hong Kong introduced enhanced tax deductions for expenditure incurred in qualifying R&D activities last year to encourage more enterprises to conduct R&D in the city. At a roundtable luncheon on 4 November, Wilson Cheng, Partner of Hong Kong Business Tax Services/Tax Controversy Services at EY, gave an overview of the changes, and also explained the Inland Revenue Department’s approach to such deductions under its Departmental Interpretation and Practice Notes. He also provided a number of case studies to help participants understand the definition of “qualifying R&D activities.”
2019/11/04
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Hong Kong Resident Status – A Swinging Pendulum?
Hong Kong has entered into Comprehensive Double Taxation Agreements (CDTA) with 40 jurisdictions. The advantage of CDTAs is the reduction or elimination of double taxation on certain cross-border transactions, but it is necessary to first obtain Hong Kong resident status to enjoy these tax benefits. At a lunchtime seminar on 28 February, Wilson Cheng and Cherry Lam, Partners from EY, explained that the practice of the Inland Revenue Department in issuing certificates of resident status has become more stringent. In particular, the speakers examined the procedures and criteria for obtaining Hong Kong resident status through sharing some practical cases. They also touched on the approach adopted in Mainland China and Indonesia in determining tax residency status.
2019/02/28
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