On 20 February 2019, the Inland Revenue Department of Hong Kong reported that the Inland Revenue (Amendment) (No. 7) Bill 2018 (“The Bill”) was passed by the Legislative Council (Link). The Bill was gazette on 2 November 2018 (Link-Blog). The new Ordinance gives effect to five amendments to the Inland Revenue Ordinance (IRO). These include:
- aligning the tax treatment of financial instruments with their accounting treatment;
- allowing taxpayers the deduction of interest expenses payable to overseas export credit agencies;
- refining the provisions that implement the arrangement for automatic exchange of financial account information in tax matters (AEOI);
- avoiding double non-taxation of income of visiting teachers and researchers; and
- revising the meaning of the sibling relationship
According to the Hong Kong representative, “The amendments related to the AEOI are particularly crucial for Hong Kong to preserve its competitiveness and reputation as an international financial and business center”.