kakase/hk_gov_press_release huggingface dataset:
SFST speaks on reform of Financial Reporting Council
9.6.2021

Following is the transcript of remarks by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, during a media session at the Legislative Council Complex this morning (June 9): Reporter: Will the Government's Council weaken the power of HKICPA (Hong Kong Institute of Certified Public Accountants)? And the second question is why the announcement was made yesterday when there seemed to be insufficient consultation. How likely will it affect our economic freedom when the authority's monitoring power has decreased? Thank you. Secretary for Financial Services and the Treasury: I think, in terms of consultation, and I will answer the second part of your question first, in fact the consultation has already started and we have engaged a few of the key accounting organisations here in Hong Kong to gauge their views on our proposals. So on that front, basically it is a continuous process. The next stage for us is really to present our proposals to LegCo panel, and also to have the primary legislation scrutinised by LegCo and potentially the subsidiary legislation to be scrutinised by LegCo next year. It's not really a matter of a few months, but a matter of this year and next year. This is number one. Number two, I think it is totally irrelevant to economic freedom as you highlighted. Because after all, as I set out at the outset, it is an international global trend in terms of having an independent regulation of the accounting profession, which is not really attached to the profession itself. It is an international trend which is well recognised. At the same time, it is not something that came out of the blue. If you look at the time when we introduced changes to the current regime of FRC (Financial Reporting Council) back in 2018 and 2019, we already set out clearly that it would be a gradual step-by-step process to reform the regulation. Right now, what we are doing is not a change in nature, but a change in the scope in terms of how this regulatory function is being performed. Reporter: Sorry, Secretary, you have missed my first question. Will the Government's Council weaken the power of the HKICPA? Secretary for Financial Services and the Treasury: It is not really a matter of weakening the power, but I would say that it allows the HKICPA to focus on the long-term development of the profession. On that, if you look at what the HKICPA has done for the profession over the past years, many of the achievements are well noted and it is also something that we well recognised. But if you put that against the backdrop of the global international trend of having an independent regulation of the accounting profession, that's why we come up with these new proposals. And as I said, it is not something totally new because back in two years ago, we already set out that a phase-by-phase approach would be adopted. (Please also refer to the Chinese portion of the transcript.)
Interest on Tax Reserve Certificates
4.6.2021

âThe Government Gazette published today (June 4) contains a Legal Notice to the effect that the Secretary for Financial Services and the Treasury has authorised a change in the rate of interest payable on Tax Reserve Certificates. From June 7, 2021, the new annual rate of interest will be 0.05 per cent against the current rate of 0.0833 per cent, i.e. the new rate will be $0.0042 per month per $100. Tax Reserve Certificates bear simple interest, and interest is calculated monthly (including part of a month) from the date of purchase to the date of payment of tax. Interest is only credited when certificates are used to pay tax and no interest is due where the principal value of a certificate is repaid to its holder. The rate of interest payable on Tax Reserve Certificates is periodically revised in line with the market trend. Currently, it is reviewed every month based on the average prevailing interest rate for the 12-month time deposit for $100,000 to $499,999 offered by the three note-issuing banks. The new rate will apply to all certificates purchased on or after June 7, 2021. Certificates purchased before June 7, 2021, will continue to earn interest at the rates prevailing on their respective purchase dates. Below is a summary of the interest rates for the past periods: For certificates purchased on or after 0.3167 per cent per annum February 3, 2020, and before May 4, 2020: For certificates purchased on or after 0.2333 per cent per annum May 4, 2020, and before June 1, 2020: For certificates purchased on or after 0.2000 per cent per annum June 1, 2020, and before December 7, 2020: For certificates purchased on or after 0.1500 per cent per annum December 7, 2020, and before April 7, 2021: For certificates purchased on or after 0.1167 per cent per annum April 7, 2021, and before May 3, 2021: For certificates purchased on or after 0.0833 per cent per annum May 3, 2021, and before June 7, 2021: For certificates purchased on or after 0.0500 per cent per annum June 7, 2021, until further notice: This is always subject to the general rule that interest ceases to accrue after 36 complete months.
Government welcomes passage of Inland Revenue (Amendment) (Miscellaneous Provisions) Bill 2021
2.6.2021

The Secretary for Financial Services and the Treasury, Mr Christopher Hui, welcomed the passage of the Inland Revenue (Amendment) (Miscellaneous Provisions) Bill 2021 by the Legislative Council today (June 2). It will implement four areas of amendments to the Inland Revenue Ordinance (Cap. 112), namely the tax treatment for amalgamation of companies under the court-free procedures as provided for under the Companies Ordinance (Cap. 622); the tax treatment for transfer or succession of specified assets under certain circumstances; refining the statutory framework for the furnishing of tax returns; and enhancing the foreign tax deduction regime. Mr Hui said, "The Ordinance codifies the tax treatment with regard to qualifying amalgamations and the transfer or succession of specified assets, offering better clarity and certainty of the relevant matters. "It would also provide the legal basis to enable more businesses to voluntarily file tax returns, including financial statements, electronically, with the ultimate goal of implementing electronic filing of profits tax returns through the Business Tax Portal. "Enhancing the foreign tax deduction regime will reduce the tax liability of Hong Kong branches of foreign corporations, in particular foreign banks, and holders of intellectual property. It would help foster a more favourable business environment, particularly reinforcing Hong Kong's attractiveness as a banking location, and promoting Hong Kong as a research and development hub." The Ordinance will come into operation on its gazettal date (June 11). Amendments in relation to foreign tax deduction will take effect from the year of assessment 2021/22.
Government to introduce resolutions to raise borrowing limits under Government Bond Programme and Government Green Bond Programme
26.5.2021

The Government served notices to the Legislative Council (LegCo) today (May 26) announcing its intention to introduce two resolutions under the Loans Ordinance to raise the borrowing limits of the Government Bond Programme (GBP) and the Government Green Bond Programme (GGBP), with a view to promoting the sustainable development of the local bond market. One resolution seeks to raise the maximum amount of borrowings under the GBP from the current $200 billion to $300 billion, and the other resolution seeks to raise the maximum amount of borrowings under the GGBP from the current $100 billion to $200 billion. The Secretary for Financial Services and the Treasury, Mr Christopher Hui, said, "The GBP and the GGBP have been serving the important function of promoting bond market development in Hong Kong through regular issuances of institutional, retail and green bonds. The two programmes have been well received by the market as evident in the oversubscription recorded for past issuances. We hope that, with the enlarged scale, they can cater for the increasing demand of local and international investors for high-quality government bonds. This will reinforce Hong Kong's position as a leading bond market in Asia and strengthen our competitiveness as an international financial centre. "A total of US$3.5 billion of green bonds has been successfully launched through two issuances under the GGBP so far. We will expand the scope of the GGBP so that the green bond proceeds can be used to fund a wider variety of green projects, allowing the Government to further tap into the green bond market to support the low-carbon transformation in Hong Kong, thereby consolidating Hong Kong's position as a green finance hub in the region. "Through regular issuances of retail bonds, citizens are provided with a safe investment choice of steady return. Apart from issuing inflation-linked retail bonds, the Government will also lower the eligible age for subscribing Silver Bond from 65 to 60 and issue retail green bonds in this financial year. We hope that the borrowing limits of the two programmes can be raised as soon as possible, thereby allowing more flexibility for the issuance arrangements in future." The GBP was established in 2009 with the policy objective of promoting the sustainable development of the local bond market through systematic issuances of government bonds. The GGBP was established in 2018 with the policy objective of promoting the development of green finance in Hong Kong. Subject to the necessary legislative process, the Government will move the resolutions in LegCo on June 16.
Interest on Tax Reserve Certificates
30.4.2021

The Government Gazette published today (April 30) contains a Legal Notice to the effect that the Secretary for Financial Services and the Treasury has authorised a change in the rate of interest payable on Tax Reserve Certificates. From May 3, 2021, the new annual rate of interest will be 0.0833 per cent against the current rate of 0.1167 per cent, i.e. the new rate will be $0.0069 per month per $100. Tax Reserve Certificates bear simple interest, and interest is calculated monthly (including part of a month) from the date of purchase to the date of payment of tax. Interest is only credited when certificates are used to pay tax and no interest is due where the principal value of a certificate is repaid to its holder. The rate of interest payable on Tax Reserve Certificates is periodically revised in line with the market trend. Currently, it is reviewed every month based on the average prevailing interest rate for the 12-month time deposit for $100,000 to $499,999 offered by the three note-issuing banks. The new rate will apply to all certificates purchased on or after May 3, 2021. Certificates purchased before May 3, 2021, will continue to earn interest at the rates prevailing on their respective purchase dates. Below is a summary of the interest rates for the past periods: For certificates purchased on or after 0.3667 per cent per annum January 17, 2020, and before February 3, 2020: For certificates purchased on or after 0.3167 per cent per annum February 3, 2020, and before May 4, 2020: For certificates purchased on or after 0.2333 per cent per annum May 4, 2020, and before June 1, 2020: For certificates purchased on or after 0.2000 per cent per annum June 1, 2020, and before December 7, 2020: For certificates purchased on or after 0.1500 per cent per annum December 7, 2020, and before April 7, 2021: For certificates purchased on or after 0.1167 per cent per annum April 7, 2021, and before May 3, 2021: For certificates purchased on or after 0.0833 per cent per annum May 3, 2021, until further notice: This is always subject to the general rule that interest ceases to accrue after 36 complete months.
Government welcomes passage of Inland Revenue (Amendment) (Tax Concessions for Carried Interest) Bill 2021
28.4.2021

The Secretary for Financial Services and the Treasury, Mr Christopher Hui, welcomed the passage of the Inland Revenue (Amendment) (Tax Concessions for Carried Interest) Bill 2021 (the Bill) by the Legislative Council today (April 28). The Bill seeks to amend the Inland Revenue Ordinance (Cap. 112) to provide tax concessions for carried interest distributed by eligible private equity funds operating in Hong Kong. Mr Hui said, "The tax concession regime for carried interest would attract more private equity funds to operate and be managed in Hong Kong, thus boosting more investment management and related activities, which will bring business opportunities to various professional services and economic benefits to Hong Kong." Qualifying carried interest recipients have to fulfil substantial activities requirements (including the number of qualified full-time employees and operating expenditure incurred in Hong Kong) for the tax concessions to apply. The Bill also expands the classes of assets that may be held and administered by a special purpose entity on behalf of a fund for the purpose of profits tax exemption regime for funds, with a view to facilitating the operation of funds in Hong Kong. The Bill will commence on the day on which the amendment ordinance is gazetted, and will apply concessionary tax treatment to eligible carried interest received by, or accrued to, qualifying carried interest recipients on or after April 1, 2020. The Hong Kong Monetary Authority and Inland Revenue Department will announce relevant implementation details in due course.
Government welcomes passage of tax concessions
28.4.2021

The Secretary for Financial Services and the Treasury, Mr Christopher Hui, welcomed the passage of the Revenue (Tax Concessions) Bill 2021 by the Legislative Council today (April 28). It gives effect to the tax concessions proposed by the Government in the 2021-22 Budget, reducing salaries tax, tax under personal assessment and profits tax for the year of assessment 2020/21 by 100 per cent, subject to a ceiling of $10,000 per case. "The concessionary measure helps relieve the financial burden of taxpayers. The Inland Revenue Department will reflect the tax reductions in the tax demand notes to be issued," Mr Hui said. The measure will benefit 1.87 million taxpayers of salaries tax and tax under personal assessment, and 128 000 businesses. The government revenue in 2021-22 will be reduced by $12.45 billion accordingly.
LCQ16: Macroeconomic data of Hong Kong
28.4.2021

Following is a question by the Hon Luk Chung-hung and a written reply by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, in the Legislative Council today (April 28): Question: Regarding the macroeconomic data of Hong Kong, will the Government inform this Council: (1) of the (i) compensation of employees (CoE), (ii) gross operating surplus (GOS), (iii) ratio of CoE to Gross Domestic Product (GDP) (i.e. labour's share of national income) and (iv) respective contributions of CoE and GOS to rate of change in nominal GDP in percentage-point, in each year from 2012 to 2020; and (2) when conducting a test by applying a time-series econometric model, how the changes in the labour's share of national income in Hong Kong during the aforesaid period were affected by the following determinants: (i) trade openness, (ii) the size of public sector, (iii) the statutory minimum wage, (iv) the year-on-year growth in real GDP and (v) technological progress? Reply: President, After consulting the Census and Statistics Department and the Office of the Government Economist, my reply to Hon Luk Chung-hung's question is as follows: (1) According to the Census and Statistics Department's latest data up to 2019, the relevant statistics are set out at Annex. (2) Labour's share of national income, measured in terms of the ratio of compensation of employees (CoE) to Gross Domestic Product (GDP), is commonly used as a crude indicator of income distribution among labour and capital in an economy. Between 2012 and 2019, the ratio of CoE to GDP hovered around 52 per cent, indicating a broadly stable labour's share of national income. Using the time-series econometric model in the box article "Labour's share of national income in Hong Kong" in the "2013 Economic Background and 2014 Prospects" published by the Government and updating the analysis with data up to 2019, the results show that trade openness, size of public sector, Statutory Minimum Wage, year-on-year growth in real GDP, and technological progress all have statistically significant impacts on Hong Kong's labour's share of national income. In gist, trade openness is negatively correlated to labour's share of national income, while size of public sector, Statutory Minimum Wage, and technological progress are positively correlated to labour's share of national income. Yet, it is worth noting that labour's share of national income will also be affected by other factors, such as economic structure and educational attainment of the labour force, and these other factors may also interact with the aforementioned five factors. Hence, the above simple econometric analysis is only meant to provide crude statistical results for reference, instead of conducting a thorough analysis on the change in the respective share.
Clarification on implementation of inspection arrangements for Companies Register
12.4.2021

In response to media enquiries on an online report alleging that the Secretary for Financial Services and the Treasury (SFST) had provided "misleading" information regarding the implementation of inspection arrangements for Companies Register at the meeting of the Legislative Council (LegCo) Panel on Financial Affairs last Friday, a spokesman for the Financial Services and the Treasury Bureau today (April 12) described the allegation as groundless and responded as follows: The SFST explained at the LegCo last week that the Companies Registry (CR), simulating the proposed new inspection arrangements, had conducted a stocktaking exercise on the Companies Register in April 2021 in regard to records of current individual directors of live companies holding Hong Kong Identity Card who may have identical full names (including Chinese and/or English) and partial numbers of the Hong Kong Identity Card (i.e. the alphabet and the first three numbers). Results showed that, amongst these some 588 000 current directors holding Hong Kong Identity Card, only eight pairs of them have identical Chinese and/or English full names, as well as the same alphabet and the first three numbers of the Hong Kong Identity Card, equivalent to a chance of 0.003%. Some media today quoted an online report with information obtained from the Companies Register that entails comparison of partial identity card numbers in a way which is not the pattern to be adopted under the new inspection arrangements (i.e., alphabet and first three numbers), but any three out of the six numbers instead of the first three. The results therefore are not directly comparable. Meanwhile, some persons as quoted with identical particulars are from dissolved companies which are no longer live on the register. The results of the aforementioned CR's exercise could effectively demonstrate the level of reliability of the search services under the new inspection arrangements. In the meantime, taking into account comments from members of the LegCo Panel on Financial Affairs, we will look into the possibility of providing additional information for searchers to identify directors concerned in the rare circumstances of different directors having identical partial identification number (IDN) as well as Chinese and/or English full name, without compromising the principle of protecting the full IDN of directors for the protection of personal privacy.
SFST continues to meet with industry stakeholders on improving Hong Kong's electoral system (with photos/video)
9.4.2021

âThe Secretary for Financial Services and the Treasury, Mr Christopher Hui, today (April 9) met with representatives from the financial services and insurance sectors at three briefing sessions to continue to provide explanations on the improvements to the Hong Kong Special Administrative Region (HKSAR)'s electoral system, exchanging views with them and taking their questions. In the meetings, Mr Hui first elaborated on the objectives and highlights in the amended Annex I and Annex II to the Basic Law as endorsed by the Standing Committee of the National People's Congress. He reiterated the necessity and urgency of the improvements, highlighting that they have defined the institutional arrangement for the implementation of "patriots administering Hong Kong". Mr Hui added that improving the electoral system can safeguard the overall interests of society and enhance the governance efficacy of the HKSAR, ensuring the continued success of "one country, two systems" for maintaining the stability and prosperity of Hong Kong. He added, "The National 14th Five-Year Plan supports and enhances Hong Kong's status as an international financial centre. We will continue to work on all fronts to develop vigorously our financial markets and infrastructure, and nurture professionals with diverse talents for better integration of Hong Kong into the overall development of our country." Today's briefings were joined by almost 50 members from different professions of the financial services industry and the insurance sector. Mr Hui appealed to them to support and co-operate with the Government in their work to improve the electoral system, adding that he would continue to provide explanations to the public for the better understanding of the community at large. Also present at the briefings were the Permanent Secretary for Financial Services and the Treasury (Financial Services), Ms Salina Yan; the Under Secretary for Financial Services and the Treasury, Mr Joseph Chan; and the Political Assistant to the Secretary for Financial Services and the Treasury, Mr Julian Ip.