Hong Kong Extends Profits Tax Exemption to Resident, Privately Offered Open-Ended Fund Companies
On Mar 29, 2018, Hong Kong's Inland Revenue (Amendment) (No. 4) Bill 2017 to extend the profits tax exemption for open-ended fund companies (OFC) became law (New Law), after being passed by the Legislative Council on Mar 28, 2018. The New Law removes the ring-fencing effect of the Bill and addr...
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Published in | Journal of International Taxation Vol. 29; no. 7; pp. 10 - 11 |
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Main Authors | , , , , , |
Format | Trade Publication Article |
Language | English |
Published |
Boston
Thomson Reuters (Tax & Accounting) Inc
01.07.2018
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Subjects | |
Online Access | Get full text |
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Summary: | On Mar 29, 2018, Hong Kong's Inland Revenue (Amendment) (No. 4) Bill 2017 to extend the profits tax exemption for open-ended fund companies (OFC) became law (New Law), after being passed by the Legislative Council on Mar 28, 2018. The New Law removes the ring-fencing effect of the Bill and addresses identified potential tax loopholes. Contrary to the Bill, the New Law does not include any explicit tainting provision regarding the nonqualifying transactions. However, the government has noted that the code governing the operations of OFCs to be provided by the Securities and Futures Commission will include conditions prohibiting an OFC from making an investment in nonqualifying transactions that exceeds 10% of its total investment. |
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ISSN: | 1049-6378 |