kakase/hk_gov_press_release huggingface dataset:
Government welcomes passage of Inland Revenue (Amendment) (Disposal Gain by Holder of Qualifying Equity Interests) Bill 2023
6.12.2023

The Government welcomes the passage of the Inland Revenue (Amendment) (Disposal Gain by Holder of Qualifying Equity Interests) Bill 2023 by the Legislative Council today (December 6). The Bill gives effect to the Tax Certainty Enhancement Scheme proposed in the 2023-24 Budget Speech to provide greater certainty of non-taxation of onshore gains on disposal of equity interests (the gains) that are of capital nature. The Secretary for Financial Services and the Treasury, Mr Christopher Hui, said, "Hong Kong is committed to improving the business environment so as to attract more enterprises to Hong Kong and drive economic growth. The Tax Certainty Enhancement Scheme provides businesses with upfront certainty of the non-taxation of onshore gains on disposal of equity interests that are of capital nature through the application of simple and clear rules. This will also expedite tax determination and reduce the compliance cost. All these serve to facilitate business expansion and restructuring as well as the development of Hong Kong as a premier platform for international investment and business activities." Currently, the Inland Revenue Department (IRD) adopts a "badges of trade" approach, where considerations are given to the relevant facts and circumstances of the case, to determine the nature of the gains and whether the gains are subject to tax. Under the Tax Certainty Enhancement Scheme, the gains made by an investor entity will be treated as capital in nature and not chargeable to tax if the investor entity has held certain equity interests in the investee entity throughout the continuous period of 24 months immediately before the date of disposal and those equity interests having been held amount to at least 15 per cent of the total equity interests in the investee entity, subject to certain conditions imposed to uphold the integrity of Hong Kong's tax system. This obviates the need for assessing the taxability of such gains based on the "badges of trade" approach. The Tax Certainty Enhancement Scheme introduced by Hong Kong stands out from similar schemes in other tax jurisdictions in terms of tax competitiveness by offering broader coverage for businesses and equity interests, along with a lower equity holding threshold. It also provides greater flexibility by allowing the minimum equity holding percentage of 15 per cent to be met by aggregating the equity interests held by the investor entity and its closely related entity/entities, and permitting the disposal of equity interests in tranches, subject to certain restrictions. There is no specified expiry date for the Tax Certainty Enhancement Scheme. The Bill as passed will be gazetted on December 15, 2023. The scheme will be applicable to the gains where the disposal occurs on or after January 1, 2024, and the gains accrued in the basis period for a year of assessment beginning on or after April 1, 2023. For more details, please visit the webpage of the IRD on the Tax Certainty Enhancement Scheme ( www.ird.gov.hk/eng/tax/bus_taxcertainty.htm ).
Government welcomes passage of Inland Revenue (Amendment) (Taxation on Foreign-sourced Disposal Gains) Bill 2023
29.11.2023

The Government welcomes the passage of the Inland Revenue (Amendment) (Taxation on Foreign-sourced Disposal Gains) Bill 2023 by the Legislative Council today (November 29). The Bill refines Hong Kong's foreign-sourced income exemption (FSIE) regime by expanding the scope of assets in relation to foreign-sourced disposal gains to cover assets other than shares or equity interests. The Secretary for Financial Services and the Treasury, Mr Christopher Hui, said, "With the passage of the Bill, Hong Kong's FSIE regime will be brought in line with the latest requirement of the Guidance on Foreign Source Income Exemption Regimes updated by the European Union (EU) in December 2022. Hong Kong's tax regime is further strengthened to counter cross-border tax avoidance and prevent double non-taxation. "Under the refined FSIE regime, foreign-sourced non-intellectual property (IP) disposal gains will continue to be exempt from tax if the multinational enterprise (MNE) entity has adequate economic substance in Hong Kong. For foreign-sourced IP disposal gains, the extent of the tax exemption will be determined by the nexus approach promulgated by the Organisation for Economic Co-operation and Development. While the scope of assets in relation to foreign-sourced disposal gains is expanded, exemption and relief have been put in place to minimise the compliance burden of the affected MNE entities. This will maintain the tax competitiveness of Hong Kong." To provide the necessary continuity and tax certainty for taxpayers, other parts of the existing compliance framework of Hong Kong's FSIE regime will continue to apply to the refined FSIE regime. This covers the availability of double taxation relief and treatment of disposal loss as well as business facilitating measures to reduce compliance burden, enhance tax certainty and ensure tax transparency. For more details, please visit the webpage of the Inland Revenue Department on Foreign-sourced Income Exemption ( www.ird.gov.hk/eng/tax/bus_fsie.htm ). The refined FSIE regime will be implemented with effect from January 1, 2024. The Government will request the EU to swiftly remove Hong Kong from the EU watchlist on tax co-operation.
Public consultation on promoting paperless corporate communication for Hong Kong companies launched
27.11.2023

The Financial Services and the Treasury Bureau (FSTB) published today (November 27) a consultation paper on the proposal to promote paperless corporate communication for Hong Kong companies. The Secretary for Financial Services and the Treasury, Mr Christopher Hui, said, "Promoting paperless corporate communication will improve the efficiency and cost effectiveness of companies and establish an environmentally friendly business environment in Hong Kong." The consultation paper sets out key features of the legislative proposals to amend the Companies Ordinance (Cap. 622), including introducing an implied consent mechanism and streamlining the notification requirement regarding the dissemination of corporate communications by means of website. Safeguard measures will be put in place to protect the interest of shareholders. The spokesman for the FSTB said, "We welcome members of the public to give views on the proposals of the consultation paper. We will fully consider the comments received when finalising the proposals." The consultation paper is available on the webpage of the FSTB at www.fstb.gov.hk/fsb/en/publication/consult/consult-policy.html . Members of the public may submit views to the FSTB by email ( e-comm-consult@fstb.gov.hk ) or by post (15/F, Queensway Government Offices, 66 Queensway, Hong Kong), on or before January 26, 2024.
SFST to attend Annual Conference of Financial Street Forum 2023 in Beijing
8.11.2023

The Secretary for Financial Services and the Treasury, Mr Christopher Hui, will depart for Beijing this evening (November 8) to attend a parallel forum on the Belt and Road Initiative at the Annual Conference of the Financial Street Forum 2023. The parallel forum will be held on November 9, with the theme of promoting Belt and Road development to foster regional co-operation and achieve mutual benefits. Mr Hui will deliver a speech at the forum. The Financial Street Forum was founded in 2012. The Annual Conference of the Financial Street Forum has been enhanced as a national, global and professional forum since 2020. More than 400 participants from over 30 countries and regions worldwide are invited to attend this year's annual conference to exchange views on current economic and financial hot topics. Mr Hui will return to Hong Kong on November 10. During his absence, the Under Secretary for Financial Services and the Treasury, Mr Joseph Chan, will act as the Secretary for Financial Services and the Treasury.
FSTB publishes details of three major initiatives announced in Hong Kong FinTech Week 2023
6.11.2023

One of the annual flagship events of the Financial Services and the Treasury Bureau (FSTB), the Hong Kong FinTech Week 2023, was concluded yesterday (November 5). Themed "Fintech Redefined.", the event this year features more than 500 speakers, 650 exhibitors and tens of thousands of participants from over 90 economies either in person or virtually. The Secretary for Financial Services and the Treasury, Mr Christopher Hui, announced three major initiatives to foster co-development of fintech and real economy at the Main Conference of the FinTech Week on November 2. These include launching a new Integrated Fund Platform (IFP), welcoming cross-boundary e-CNY applications to benefit inbound and outbound visitors between the Mainland and Hong Kong, and promoting real economy-related applications and innovations by the Virtual Assets (VA) and Web3.0 sector, as well as further development of the regulatory framework. "To elaborate on our three major initiatives, the FSTB published today (November 6) details of each of them for better understanding by all stakeholders," Mr Hui said. The Securities and Futures Commission (SFC) welcomes the plan to establish a new IFP for retail fund distribution, noting that this will reinforce Hong Kong's position as a leading international asset and wealth management centre. The Hong Kong Exchanges and Clearing Limited (HKEX) also has announced that it is currently evaluating the operating model and structure of the fund platform. The HKEX will work closely with the Government, the SFC and other stakeholders on the development. The e-CNY applications announced represent cross-boundary financial innovations, connecting the e-CNY ecosystem with payment vehicle and banking payment system in Hong Kong. These innovations focus on retail payments, facilitating cross-boundary consumption and the interconnectivity within the Greater Bay Area. They also pave the way for exploring more future application scenarios and use cases of e-CNY in the Greater Bay Area. On facilitating innovations by the VA and Web3.0 sector, the Government will seek to promote real economy-related applications and innovations by the sector, for example tokenisation of Real World Assets and traditional financial assets, and further development of the regulatory framework for VA-related activities. "I am glad to learn that our initiatives are well supported. Looking ahead, the Government will join hands with regulators and major market players to press ahead with the initiatives, with a view to injecting new energy to our ever-growing fintech ecosystem," Mr Hui said. Details of the three major initiatives announced in the FinTech Week can be found in annexes.
FSTB launches GBA Fintech Two-way Internship Scheme for Post-secondary Students
27.10.2023

The Financial Services and the Treasury Bureau today (October 27) launched the GBA Fintech Two-way Internship Scheme for Post-secondary Students to help students acquire practical work experience in fintech companies in Hong Kong and Mainland cities of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA). The Secretary for Financial Services and the Treasury, Mr Christopher Hui, said, "The Government has been attaching great importance to nurturing fintech talent. The Scheme will enable students to gain first-hand understanding of the operation of fintech companies and fintech ecosystems of Hong Kong and the Mainland, and equip them early with knowledge in pursuing a career in fintech, thereby enlarging the local fintech talent pool." In his 2023-24 Budget, the Financial Secretary announced the introduction of a fintech internship scheme for post-secondary students. The Scheme will provide more than 150 internship positions in Hong Kong and Mainland cities of the GBA (Guangzhou, Shenzhen and Zhuhai), covering fintech companies of different segments in Hong Kong and the Mainland, including virtual banks, virtual insurers, regtech, wealthtech, credittech and payment tech. More than 30 fintech companies will participate in the Scheme. The Scheme is targeted at full-time students studying fintech-related subjects in post-secondary institutions in Hong Kong and Mainland cities of the GBA, including higher diploma and associate degree students, undergraduates, master's degree students or postgraduates. Internship positions in Hong Kong accept applications from Mainland students studying in Hong Kong, as well as Mainland students studying in Mainland cities of the GBA who hold valid permits to enter Hong Kong. Internship positions in Mainland cities of the GBA accept applications from Hong Kong students studying in Hong Kong and Mainland cities of the GBA. The Scheme will provide students with a two-month internship opportunity (with extension up to six months) and a monthly subsidy of HK$12,000 (or RMB10,500). The winter internship scheme is open for application from today until November 30. The first batch of students is expected to commence internships by the end of this year at the earliest. Details of the summer internship scheme will be announced in the first half of next year. The Financial Services and the Treasury Bureau has appointed Cyberport to administer the Scheme. For details of the application procedures and internship positions, please visit the dedicated website of Cyberport ( gbafinternship.cyberport.hk/ ).
Coordination Group on Implementation of Fintech Initiatives convenes third meeting
4.10.2023

The Secretary for Financial Services and the Treasury, Mr Christopher Hui, today (October 4) chaired the third meeting of the Coordination Group on Implementation of Fintech Initiatives (CGFin) and conducted exchanges with representatives from the financial regulators, fintech sector, academia and research institutions on the development of Hong Kong's fintech sector. Mr Hui said, "The Government attaches great importance to the development of fintech and has been working closely with financial regulators and industry stakeholders to co-ordinate various key areas of fintech development and ensure that the policies and regulatory regimes will tie in with the market development needs. The work of CGFin will further promote cross-sectoral co-operation. I am indebted to the valuable views expressed by the industry representatives." Focusing on three major areas, namely market development, regulation and nurturing talent, representatives from the Government and financial regulators reported on the relevant measures to promote the development of fintech and the latest progress, including the overall landscape and development trends of green fintech, the Fintech Promotion Roadmap published by the Hong Kong Monetary Authority (HKMA) in August 2023, as well as the regulatory regime for stablecoins which is currently under study. On nurturing fintech talent, the Financial Services and the Treasury Bureau (FSTB) will launch a fintech internship scheme for post-secondary students, which aims at helping students studying in fintech related subjects to acquire practical work experience in fintech enterprises in Hong Kong and the Guangdong-Hong Kong-Macao Greater Bay Area, thus equipping them early with knowledge of pursuing a career in the fintech sector. Furthermore, to promote the professional development of fintech talent, the FSTB has commissioned a consultancy study on developing fintech professional Qualifications Framework for the securities and insurance sectors. The consultancy study is expected to be completed by end-2023. Hong Kong Fintech Week 2023, themed "FinTech Redefined." will be held in the week of October 30, with the main conference to be held on November 2 and 3. The eighth edition of the event will attract attendees from all over the world, including renowned speakers across different sectors. The FSTB and Invest Hong Kong will work with the various participating parties and the industry to showcase the vitality of Hong Kong's fintech ecosystem to the global markets in an innovative manner. The Secretary for Financial Services and the Treasury is the Chairman of CGFin. Its members include representatives from the HKMA, the Securities and Futures Commission, the Insurance Authority, the Mandatory Provident Fund Schemes Authority, Invest Hong Kong, Cyberport and Hong Kong Science and Technology Parks Corporation.
SFST attends Eighth Annual Meeting of AIIB Board of Governors in Sharm El Sheikh (with photos)
26.9.2023

The Secretary for Financial Services and the Treasury, Mr Christopher Hui, attended the Eighth Annual Meeting of the Board of Governors of the Asian Infrastructure Investment Bank (AIIB) in Sharm El Sheikh, Egypt, yesterday (September 25, Sharm El Sheikh time). He also met with other financial officials attending the annual meeting to strengthen co-operation between Hong Kong and other places. Speaking at discussion topic "Low Carbon Development &ndash; Supporting a Just and Effective Transition" at the Governors' Business Roundtable in the afternoon yesterday, Mr Hui shared how Hong Kong could facilitate the transition in terms of low-carbon development in three ways. These include a clear goal of achieving carbon emission reduction by 50 per cent before 2035 and achieving carbon neutrality by 2050; having the right tool for issuing green and sustainable bonds as well as carbon credit trading; and having great minds to fulfill the talent need in response to the new trend of developing low carbon and sustainable economy. Mr Hui met with the Vice President, Investment Operations (Region 1) of the AIIB, Mr Urjit R. Patel and the Vice President, Investment Operations (Region 2) of the AIIB, Mr Konstantin Limitovskiy. He shared with the two Vice Presidents Hong Kong's strengths in infrastructure financing, including issuances of green and sustainable bonds and the provision of carbon credit trading platform. In the meeting with the Chief Financial Officer of the AIIB, Mr Andrew Cross, Mr Hui briefed him the latest development of security market, risk management and wealth management in Hong Kong. On the sidelines of the annual meeting, Mr Hui met with the Sri Lanka delegation led by the Secretary to the Treasury, Ministry of Finance of Sri Lanka, Mr K M Mahinda Siriwardana. The two sides discussed how to foster closer economic and trade ties. Today (September 26), Mr Hui will meet with the Minister of International Cooperation of Egypt, Dr Rania A. Al-Mashat, and the Assistant Minister of Finance for Macro-Fiscal Policies and International Relations of Saudi Arabia, Mr Abdulmuhsen Alkhalaf, in Sharm El Sheikh before concluding his visit. Mr Hui will be back in Hong Kong tomorrow (September 27) night.
SFST meets senior Egyptian officials in Cairo and Sharm El Sheikh (with photos)
25.9.2023

The Secretary for Financial Services and the Treasury, Mr Christopher Hui, yesterday (September 24, Sharm El Sheikh time) met with the Minister of Finance of Egypt, Mr Mohamed Maait, in Sharm El Sheikh, Egypt. Mr Hui elaborated how Egypt could make use of Hong Kong's strengths in connectivity with the Mainland capital market and bond issuance to raise international capital, as well as the sound infrastructure conductive to the development of Islamic finance. Another senior official Mr Hui met yesterday was the Minister of Planning and Economic Development of Egypt, Dr Hala H Elsaid. They discussed opportunities and challenges in the process of achieving economic growth while supporting the transition to a green and sustainable economy. Mr Hui also met with the President of the Asian Infrastructure Investment Bank (AIIB), Mr Jin Liqun yesterday evening. Mr Hui thanked Mr Jin for supporting Hong Kong's participation in the AIIB. During the meeting with the Minister of Public Business Sector of Egypt, Mr Mahmoud Esmat in Cairo on September 23 (Cairo time), Mr Hui welcomed the country to raise funds through Hong Kong's bond market which has a full-fledged ecosystem of financial intermediaries and professional service providers. At his meeting with the Executive Chairman of the Egyptian Exchange, Mr Ahmed Abdel Rahman El Sheikh, on the same day, Mr Hui introduced Hong Kong's listing reform in recent years facilitating new economy companies, pre-profit/revenue specialist technology enterprises to list in the city, and the launch of "Hong Kong Dollar-Renminbi (RMB) Dual Counter Model" to facilitate the issuance and trading of RMB-denominated stocks in Hong Kong. On September 23, Mr Hui in Cairo called on the Director General of the Department of International Economic and Financial Cooperation, Ministry of Finance, Mr Cheng Zhijun. Mr Hui expressed gratitude to the Ministry of Finance in providing support for Hong Kong's role in the work of the AIIB. An example is AIIB's participation in the first issuance of infrastructure loan-backed securities by the Hong Kong Mortgage Corporation Limited as an anchor investor in May this year, as a way to fulfil its strategic priority to mobilise private capital into the infrastructure sector. Mr Hui attended the Board of Directors' Meeting of the AIIB in Cairo on September 22 to learn about, among others, the business plan of the AIIB and the update of projects financed by the bank. He also called on the Minister of the Chinese Embassy in Egypt, Mr Zhang Chaoyang, that morning. Mr Hui will join the Eighth Annual Meeting of the Board of Governors of the AIIB in Sharm El Sheikh today (September 25) and tomorrow (September 26). On the sidelines of the meeting, Mr Hui will come face to face with top management of the AIIB.
SFST to visit Qatar and Egypt
18.9.2023

The Secretary for Financial Services and the Treasury, Mr Christopher Hui, will depart for a visit to Qatar and Egypt tomorrow evening (September 19). The visit to Doha, Qatar, on September 20 and 21 aims to strengthen the bilateral relationship with the country. While in Egypt, Mr Hui will attend the Board of Directors' Meeting of the Asian Infrastructure Investment Bank (AIIB) on September 22 in Cairo, and the Eighth Annual Meeting of the Board of Governors of AIIB on September 25 and 26 in Sharm El Sheikh. The theme of this year's Meeting of the Board of Governors is "Sustainable Growth in a Challenging World". Participating officials and leaders from around the world will share ideas and experiences on supporting the key infrastructure demands for a sustainable future, amid the climate-centred global agenda, and the compounding challenges faced by its members. In the two countries, Mr Hui will meet with senior financial officials, and representatives from financial regulators and major financial institutes. In Egypt, Mr Hui will also meet with the management of the AIIB and other financial officials attending the meeting. Mr Hui will return to Hong Kong on September 27. During his absence, the Under Secretary for Financial Services and the Treasury, Mr Joseph Chan, will act as the Secretary for Financial Services and the Treasury.