​Hongkong Post announced today (December 27) that, as advised by the postal administration of Malaysia, mail delivery services to Malaysia previously impacted by flooding have returned to normal. read more
The Inland Revenue (Amendment) (Minimum Tax for Multinational Enterprise Groups) Bill 2024 was published in the Gazette today (December 27).
The Bill seeks to implement the international tax reform framework, Base Erosion and Profit Shifting (BEPS) 2.0, promulgated by the Organisation for Economic Co-operation and Development in October 2021, and put in place the global minimum tax and the Hong Kong minimum top-up tax (HKMTT) from 2025. Currently, more than 140 jurisdictions (including Hong Kong) have accepted the reform framework to tackle BEPS risks arising from the digitalisation of the economy.
Under BEPS 2.0, large multinational enterprise (MNE) groups with an annual consolidated revenue of 750 million euros or above (in-scope MNE groups) need to pay a global minimum tax of at least 15 per cent in every jurisdiction in which they operate. This will reduce the incentive for large MNE groups to shift profits to low- or no-tax jurisdictions to evade tax responsibility, and minimise harmful competition among countries/regions to attract investment by lowering profits tax rates, thus creating a fairer taxation environment.
With the implementation of the HKMTT, if the effective tax rate of an in-scope MNE group in Hong Kong is lower than 15 per cent, Hong Kong has the right to collect top-up tax from the group’s entities in Hong Kong to bring their effective tax rate up to 15 per cent. Otherwise, according to the BEPS 2.0 rules, other relevant jurisdictions have a right to collect top-up tax in respect of these low-taxed Hong Kong entities. Therefore, implementing the HKMTT can safeguard Hong Kong’s taxing rights instead of ceding them to other jurisdictions. In-scope MNE groups will also be spared the need to pay top-up tax in respect of their low-taxed Hong Kong entities in other relevant jurisdictions in which they operate, thereby reducing their compliance burden. It is estimated that the collection of top-up tax will bring to the Government an annual revenue of about $15 billion from 2027-28.
The Secretary for Financial Services and the Treasury, Mr Christopher Hui, said, “As an international financial centre and a responsible member of the global community, Hong Kong has been rendering unwavering support to international efforts in combating tax evasion. In a fairer global taxation environment, our various advantages for attracting businesses and investment will only be more accentuated, including the strong support from the motherland and close connection with the world under the ‘one country, two systems’, our simple and transparent tax regime, mature financial markets, an independent judicial system, modern infrastructure and a quality talent pool.
“The Government conducted a public consultation from December last year to March this year. We are pleased to note that stakeholders, including business chambers, professional bodies, tax professionals and MNE groups, generally support our legislative proposals. In drafting the Bill, we have also incorporated their views on the design of the HKMTT, implementation timeframe, tax administration and compliance, etc. To better help MNE groups ascertain their tax liabilities following the implementation of the global minimum tax and the HKMTT, the Inland Revenue Department has set up a dedicated team to provide technical support and will publish online guidance addressing common concerns,” Mr Hui added.
The Bill will be introduced into the Legislative Council for first reading on January 8, 2025. read more
The interdepartmental working group on festival arrangements, led by the Chief Secretary for Administration, released the following information today (December 27) on the special boundary-crossing and corresponding public transport service arrangements during New Year’s Eve and the New Year holidays.
To facilitate diversion of cross-boundary passenger and vehicular movements during New Year’s Eve and the New Year holidays, while the Hong Kong-Zhuhai-Macao Bridge (HZMB) Port and the Lok Ma Chau/Huanggang (LMC/HG) Port will maintain 24-hour operations as usual, a consensus was reached with the relevant departments of Guangdong Province and Shenzhen Municipality to make the following special arrangements on New Year’s Eve (December 31):
(1) Passenger and passenger vehicle clearance services at the Shenzhen Bay Control Point, which usually close at midnight, will operate overnight, providing round-the-clock services; and
(2) Passenger clearance services at the Lo Wu Control Point, which usually close at midnight, will be extended to 2am the next day. The operating hours of the MTR East Rail Line will be extended correspondingly, with the departure of the last East Rail Line train from Admiralty to Lo Wu extended to 12.56 am.
For more effective diversion of cross-boundary private cars on New Year’s Day with the implementation of round-the-clock clearance at the Shenzhen Bay Port, only cross-boundary private cars issued with Closed Road Permits (Permits) for the LMC/HG Control Point are allowed to cross the LMC/HG Control Point during early-morning hours on January 1. For cross-boundary private cars issued with Permits for the ports at LMC/HG, Shenzhen Bay, Man Kam To and Sha Tau Kok, they can use the Shenzhen Bay Port during early-morning hours.
For cross-boundary coaches, the Government has also worked with cross-boundary coach service operators to arrange additional services using the Shenzhen Bay Port during early-morning hours, and to enhance the services using the LMC/HG Port, including cross-boundary coaches departing from stations in urban areas such as Wan Chai, Prince Edward, Yau Ma Tei and Jordan, etc, as well as a shuttle bus running between the Lok Ma Chau (San Tin) Public Transport Interchange and the LMC/HG Port (Yellow Bus), and the HZMB shuttle bus (Gold Bus). Moreover, a dedicated passage will be established at the HZMB Port, LMC/HG Port, and Shenzhen Bay Port when necessary, to ensure the smooth operation of public transport services.
As regards local public transport services connecting to boundary control points (BCPs), to tie in with the special round-the-clock passenger clearance arrangements of the Shenzhen Bay Control Point on January 1, franchised bus operators will operate two special overnight bus routes, Nos. NB2 and NB3, to provide services to and from Yuen Long/Tin Shui Wai and Tuen Mun respectively during the overnight period. Furthermore, in the case of travellers using overnight services of the MTR East Rail Line that night, after the closure of the Lo Wu Control Point, they may also take the specially arranged short-working bus service, route No. N73, from MTR Sheung Shui Station to Lok Ma Chau (San Tin) Public Transport Interchange, and transfer to the Yellow bus for their journey to Shenzhen.
The Transport Department’s Emergency Transport Co-ordination Centre will operate 24 hours to closely monitor the traffic conditions and public transport services of various districts, the ports and major stations; implement contingency measures when necessary to meet service demands; and disseminate the latest traffic information through various channels.
“The full support and co-ordination of the leaders and relevant departments of Guangdong Province and Shenzhen Municipality are crucial to the implementation of the special boundary-crossing arrangements, reflecting the effective and close co-operation between Hong Kong and Shenzhen,” the spokesman said.
The Hong Kong Special Administrative Region Government will closely monitor the situation and take contingency actions promptly where necessary and deploy manpower flexibly to ensure orderly operations of the BCPs. The Government has formulated contingency plans for the peak periods of cross-boundary travel and made preparations for preventive and control measures to cater for different scenarios. Relevant bureaux and departments have formulated the plans below.
First, with the extension of operating hours at certain BCPs on New Year’s Eve, the relevant departments have minimised leave for frontline officers and redeployed additional staff from other BCPs for flexible manpower deployment. All clearance counters and channels will be in operation to divert passenger and vehicular flow where necessary.
Second, the Inter-departmental Joint Command Centre set up by the Hong Kong Police Force, the Immigration Department, the Customs and Excise Department and other relevant departments will monitor the real-time situations at various BCPs and regularly report to the interdepartmental working group on festival arrangements, maintain close liaison with Mainland port authorities, and take timely contingency actions to flexibly deploy manpower and open more clearance counters and channels to ensure smooth operation of the BCPs.
Third, the Security Bureau will activate the Emergency Monitoring and Support Centre in a timely manner to closely monitor public order matters and co-ordinate any necessary actions at various BCPs, and support the working group in facilitating interdepartmental follow-up actions where necessary to respond promptly to various kinds of emergencies.
The interdepartmental working group on festival arrangements is tasked with holistically co-ordinating and steering the preparatory work of various government departments for welcoming visitors to Hong Kong during the New Year’s Eve and New Year holidays, as well as strengthening information dissemination to enable the public and visitors to plan their itineraries according to the latest situation. read more
Hongkong Post announced today (December 27) that due to a fire incident at the posting box outside the Sau Mau Ping Post Office this morning, some mails are damaged. The Police are now investigating the cause of the fire. … read more
The Government announced today (December 27) the reappointment of Dr David Wong Yau-kar as the Chairman of the Education Commission (EC), as well as nine serving non-official members for a term of two years with effect from January 1, 2025.
The Secretary for Education, Dr Choi Yuk-lin, said, “I am confident that under Dr Wong’s capable leadership, and with members’ profound knowledge and experience in different fields, the EC will continue to provide sound advice and recommendations for the long-term development of Hong Kong’s education, and work together with the Government to nurture a diverse pool of talent, driving the higher-quality advancement of Hong Kong and contributing to our society and our country.”
Dr Choi thanked the outgoing members, Mr Joseph Luc Ngai and Professor Eric Yim Chi-ming, for their sterling support throughout their tenure.
The membership list of the Commission with effect from January 1, 2025, is as follows:
Chairman
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Dr David Wong Yau-kar
Ex-officio members
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Permanent Secretary for Education
Chairperson, Committee on Professional Development of Teachers and Principals
Chairman, Committee on Self-financing Post-secondary Education
Chairperson, Curriculum Development Council
Chairman, Hong Kong Examinations and Assessment Authority Council
Chairman, Quality Education Fund Steering Committee
Chairperson, Standing Committee on Language Education and Research
Chairman, University Grants Committee
Chairman, Vocational Training Council
Chairman, Committee on Home-School Co-operation
Non-official members
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Dr Phyllis Chan Kwok-ling
Dr Sylvia Chan May-kuen
Ms Mimi Cheung Yee-may
Mr Herbert Chia Pun-kok
Mr Kwok Wing-keung
Dr Ling Yu-shih
Mr Benjamin Ng Yau-keung
Professor Douglas So Cheung-tak
Dr Winnie Tang Shuk-ming read more