Updated Legislation

In the UN report issued on 8 August 2023, its Secretary-General calls for more UN involvement in setting and enforcing global tax standards, saying the OECD-led process has currently not “fully inclusive and effective” and has failed to address the needs of developing countries. The report highlights the challenges posed by illicit financial flows and tax evasion, depriving countries of trillions of dollars in potential revenue and urges the international community to ensure transparency and accountability and to combat these practices. It also highlights the outsized influence of wealthy countries on the OECD agenda that has led many developing countries, including...

The Comprehensive Avoidance of Double Taxation Agreement (CDTA) with Mauritius signed in November 2022 came into force on 23 June 2023 after the completion of the relevant ratification procedures. . The CDTA will have effect in respect of Hong Kong tax for any year of assessment beginning on or after April 1, 2024. Under the CDTA, residents of Hong Kong and Mauritius will not have to pay tax twice on a single source of income. The CDTA will bring a greater degree of certainty on tax liabilities for those who engage in cross-border business activities, and help promote bilateral trade and investment activities between Hong Kong and Mauritius. Whatsapp : (852) 6499 4686 Phone : (852)...

The revised guideline on Compliance of Anti-Money Laundering and Counter-Terrorist Financing Requirements for Trust or Company Service Providers (Guideline) has come into force with effect on 1 June 2023. Several changes were incorporated in the guideline, namely, having an independent audit function, digital identication system and employee screening procedures. We outline below Q&A to recap the respective changes: Independent Audit FunctionQ: What are the responsibilities of an independent audit function?A: An independent audit function established by a trust or company service provider (“TCSP”) licensee should regularly review the anti-money laundering and...

The Hong Kong Inland Revenue Department issued a circular end Mar 2023 that except for dormant companies and companies with no relevant laws and regulations in the place of registration, "regardless of the amount of total income, all companies and businesses must submit tax return together with supporting documents" . This new regulation came into effect on 1 April 2023, which means that the Hong Kong Inland Revenue Department will only accept a declaration of no profit supported by an audited accounts. If the Hong Kong company has no operation, it can apply to become a dormant company according to Article 5 (1) of the Hong Kong "Companies Ordinance" by a Special Resolution. After...

The Companies (Amendment) Ordinance 2023 (“the Amendment Ordinance”) will come into operation on 28 April 2023.The Amendment Ordinance seeks to modernise the Companies Ordinance (Cap. 622) and the Companies (Model Articles) Notice (Cap. 622H) to expressly cater for the scenario of companies holding fully virtual general meetings without the requirement for presence of members at any physical locations; as well as a mixed mode of such virtual general meetings and members attending at physical location(s), i.e. hybrid general meetings. For details, please refer to the Companies Registry External Circular No. 1 / 2023 at the bottom of this page. Whatsapp : (852) 6499...

The Financial Secretary of the Hong Kong, Paul Chan Mo-po, delivered the 2023-24 Budget speech on 22 February 2023 with the theme ‘Leaping forward steadily, together we bolster prosperity under our new vision’. It outlines the Government’s latest tax and fiscal policy directions, support measures and resource allocation to pursue post-panedimic economy. For details of the budget, please refer to the documents attached below. Whatsapp : (852) 6499 4686 Phone : (852) 2186 6936 Email : info@intershores.hk Disclaimer: Whilst reasonable care has been taken in provision of information above, it does not constitute legal or other professional advice. INTERSHORES...

The Anti-Money Laundering & Counter-Terrorist Financing (Amendment) Bill 2022 has been passed on 7 December 2022 which reinforces Hong Kong’s status as an international financial centre by enhancing the city’s regulatory regime for combating money laundering and terrorist financing, and by formulating a comprehensive and balanced regulatory framework for virtual asset (VA) activities to protect investors. Under the amended Anti-Money Laundering & Counter-Terrorist Financing Ordinance, any person who engages in VA exchange business is required to apply for a licence from the Securities & Futures Commission (SFC). Apart from satisfying the fit and proper test, conducting...

The Government published in the Gazette on 25 November 2022 the Companies (Amendment) Bill 2022 which aims to provide sufficient flexibility for companies to hold general meetings in various manners. Key elements of the Bill include: - the amended Ordinance will come into operation on the expiry of 3 months after the day on which it is published in the Gazette; - adding a new definition of virtual meeting technology, meaning a technology that allows a person to listen, speak and vote at a meeting without being physically present at the meeting; - providing that a person who attends a general meeting by using the virtual meeting technology specified in the notice of the meeting is...

Background 1. Currently, the Companies Register (the Register) maintained by the Hong Kong Companies Registry (the Registry) contains personal information available for public inspection. Such personal information includes, among other data, the usual residential addresses and full identification numbers (IDNs) of directors of companies, and full IDNs of company secretaries and some other individuals (such as liquidators and provisional liquidators) (Protected Information). Similar personal information is also contained in the registers kept by companies which are open for public inspection. 2. To enhance protection of sensitive personal information, while keeping up the...

In our preview e-news "https://www.intershores.hk/en/UKCo/2", it mentioned that the United Kingdom ("UK") Government has introduced legislation which increases the transparency of overseas entities, which own land or property in the UK. The Register of Overseas Entities (“the Register”) came into force on 1 August 2022, with a 6-month transitional period (until 31 January 2023) for all relevant entities to comply with the new registration requirements. In this e-news, we share an overview of the latest registration requirements. What Is Happening? In March 2022, the UK Government passed the Economic Crime (Transparency and Enforcement) Act 2022 (“the Act”)...

The two-year waiver of registration fees of a Hong Kong company for annual returns delivered on time pursuant to the Companies (Fees) (Amendment) Regulation 2020 which commenced on 1 October 2020 will end on 30 September 2022.Eligible companies (i.e. companies whose made up date of annual return falls on or before 30 September 2022) shall deliver on time their annual returns for 2022 on or before 30 September 2022 in order to enjoy the waiver.After 30 September 2022, the usual registration fees will be required even if the annual returns of these eligible companies are delivered on time. Contact us If you have any questions in relation to the annual compliance of a Hong Kong company,...

The British Virgin Islands’ (“BVI”) authorities have recently enacted a number of significant amendments to the BVI Business Companies Act, 2004, which is the primary company legislation in the BVI. This e-news provides you with some of the key changes under the new legislation and the required actions to follow. WHAT IS HAPPENING? The following legislation was recently enacted and published in the BVI Official Gazette on 12 August 2022: BVI Business Companies (Amendment) Act 2022 BVI Business Companies (Amendment) Regulations, 2022 (For the Act and Regulations, please refer to the attachment at the bottom of this page). The New Legislation Will...