Hong Kong Master Tax Guide 2012/13 (21st Edition)

This publication is a handy desktop reference book and provides comprehensive and up-to-date explanation of Hong Kong taxation laws. It provides practical and up-to-date information on the concepts governing taxation of companies, businesses, individuals, partnerships, clubs and associations in Hong Kong.

This publication examines the taxes imposed in Hong Kong under the Inland Revenue Ordinance: profits tax, salaries tax and property tax; and the Stamp Duty Ordinance. It provides readers with the answers to practical tax issues they may have as an individual, and regarding their business and property held.

Key Features

• Reviewed by the professionals at Deloitte Touche Tohmatsu, acting as the Technical Reviewer.
• The “Highlights of 2011/12 Revenue Developments” page provides a summary of what’s new in this edition.
• All legislative changes introduced since the 2011/12 edition, as well as the revenue measures announced in the 2012/13 Budget
• Worked examples that illustrate the law in practice
• The user-friendly tables on tax rates, personal allowances and due dates for tax returns are handy reference tools.
• Latest decisions of important Board of Review, Court of First Instance, Court of Appeal and Court of Final Appeal tax cases
• Contains user-friendly indexes, section finding list and case table which ensure fast access to information 

What’s New in this Edition

1.     Updated commentary on tax-related court case development

Important court cases related to profits tax in Hong such as the Court of Appeal’s decision in Commissioner of Inland Revenue v Li & Fung (Trading) Limited and the Court of First Instance’s decisions in Nice Cheer Investment Limited v Commissioner of Inland Revenue and Aviation Fuel v Commissioner of Inland Revenue.

2.     Legislative changes

Legislative amendments proposed in the 2011/12 Budget and passed during the 2012/13 year of assessment are updated in this edition. For example, reduction in salaries tax and tax under personal assessment, and the increment in the elderly residential care expenses deduction. Further, the Inland Revenue Ordinance was also amended to grant deduction for capital expenditure on purchase of copyright, registered design or registered trade mark

Legislative changes proposed in the 2012/13 Budget, which are subject to the approval of the Legislative Council, have also been updated in this edition.

3. New Departmental Interpretation and Practice Notes

The Inland Revenue Department has issued a number of new and revised Departmental Interpretation and Practice Notes (DIPN), the most notable of which may be DIPN No 48: Advance Pricing Arrangement which was issued in March 2012 and which provides guidance for enterprises seeking an Advance Pricing Arrangement (APA). It explains the APA process and the terms and conditions of the APA process prescribed by the Commissioner. The Inland Revenue Department intended to roll out the APA programme as from 2 April 2012.