Tax Analysis

2015/16 Budget Analysis

Comprehensive budget with diverse initiatives but housing measures are fewer than expected

H61/2015 – 25 February 2015

The Financial Secretary for the Hong Kong Special Administrative Region (HKSAR), Mr. John Tsang Chun-wah, delivered the 2015/16 Budget on 25 February 2015.

Against the backdrop of the social conflict in second half of 2014 and the threats of volatile macro-economy, the Financial Secretary announced a range of measures to support the affected sectors, diversify economic development and care for the disadvantaged with a view to rebuilding confidence, as well as reinforcing long-term economic growth.

The better-than-expected surplus of HKD63.8 billion for FY2014/15 is mainly resulted from the increase in stamp duty and profits tax revenue. In view of the huge surplus, more "sweeteners" and tax measures are offered to businesses and individuals as compared to last few years' budgets.

This analysis highlights the key proposals in the 2015/16 Budget for both businesses and individuals, and includes an appendix summarizing the proposed tax changes.

Read more about Hong Kong SAR Budget 2015/2016

H61/2015 – 25 February 2015
2015/16 Budget Analysis: Comprehensive budget with diverse initiatives but housing measures are fewer than expected
[English] [Simplified Chinese] [Traditional Chinese]

P213/2015 – 13 February 2015
BEPS Action 13: OECD issues guidance on CbC reporting implementation
[English] [Simplified Chinese] [Japanese] 

P212/2015 – 6 February 2015
SAT issues new rules on indirect transfers of assets by nonresident enterprises
[English] [Simplified Chinese] [Japanese] 

P211/2015 – 4 February 2015
BEPS Action 10: Discussion draft on the use of profit splits in the context of global value chains
[English] [Simplified Chinese] 

P210/2015 – 30 January 2015
BEPS Actions 8, 9, and 10: Discussion draft on revisions to chapter I of the transfer pricing guidelines (including risk, recharacterization, and special measures)
[English] [Simplified Chinese] [Japanese]  

P209/2015 – 23 January 2015
BEPS Action 14: Make dispute resolution mechanisms more effective
[English] [Simplified Chinese] [Japanese] 

P208/2015 – 21 January 2015
BEPS Action 4: Discussion draft released on deductibility of interest expense
[English] [Simplified Chinese] [Japanese]

P207/2015 – 19 January 2015
BEPS Action 10: Discussion draft on the transfer pricing aspects of cross-border commodity transactions
[English] [Simplified Chinese] [Japanese]

P206/2014 – 16 January 2015
OECD Issues BEPS Transfer Pricing Discussion Drafts
[English] [Simplified Chinese] [Japanese] 

H60/2015 – 13 January 2015
Hong Kong courts rule lump sum received on termination of contract not taxable
[English] [Simplified Chinese] 

P205/2014 – 30 December 2014
SAT issues guidance on tax treatment of share transfers by individuals
[English] [Simplified Chinese] [Japanese] 

P204/2014 – 29 December 2014
China tariff policy for 2015 announced
[English] [Simplified Chinese] [Japanese]  

P203/2014 – 19 December 2014
SAT issues regulations on the application of the GAAR 
[English] [Simplified Chinese] [Japanese]

P202/2014 – 14 November 2014
BEPS Action 10:  Proposed modifications to transfer pricing guidelines relating to low value-adding intragroup services
[English] [Simplified Chinese] [Japanese]

P201/2014 – 7 November 2014
BEPS Action 7: Preventing the artificial avoidance of PE status
[English] [Simplified Chinese] [Japanese]

P200/2014 – 15 October 2014
BEPS Action 2: Hybrid mismatch arrangements
[English] [Simplified Chinese] [Japanese]

P199/2014 – 29 September 2014
OECD Release on Intangibles: Many issues unanswered
[English] [Simplified Chinese]

P198/2014 – 29 September 2014
OECD releases the BEPS Project 2014 deliverables
[English] [Simplified Chinese]

P197/2014 – 29 September 2014
OECD Chapter I Release: Important guidance on location-specific advantages and passive association
[English] [Simplified Chinese] [Japanese]

P196/2014 – 26 September 2014
BEPS Action 15: Developing a multilateral instrument to modify bilateral tax treaties
[English] [Simplified Chinese] [Japanese]

P195/2014 – 25 September 2014
BEPS Action 6: Preventing the granting of treaty benefits in inappropriate circumstances
[English] [Simplified Chinese] [Japanese]

P194/2014 – 24 September 2014
OECD Release on Transfer Pricing Documentation: The new global standard
[English] [Simplified Chinese] [Japanese]

H59/2014 – 6 August 2014
Hong Kong signs first tax information exchange agreement
[English] [Simplified Chinese]

P193/2014 – 11 July 2014
Transfer Pricing and ‘High and New Technology Enterprises’ in China: What you need to know
[English] [Simplified Chinese] [Japanese]

H58/2014 – 16 June 2014
Proposal to extend Hong Kong’s offshore fund exemption to private equity: A step in the right direction
[English] [Simplified Chinese]

P192/2014 – 21 May 2014
BEPS Action 6: Preventing the granting of treaty benefits in inappropriate circumstances
[English] [Simplified Chinese] [Japanese]

P191/2014 – 13 May 2014
BEPS Action 2: Hybrid mismatch arrangements
[English] [Simplified Chinese] [Japanese]

P190/2014 – 12 May 2014
BEPS Action 1: Tax challenges of the digital economy
[English] [Simplified Chinese] [Japanese]

H57/2014 – 25 March 2014
Hong Kong’s new Companies Ordinance creates opportunities for tax-free amalgamations
[English] [Simplified Chinese] [Japanese]

H56/2014 - 17 March 2014
Newly published advance ruling takes a hard line in determining the locality of profits
[English] [Simplified Chinese] [Japanese]

H55/2014 - 26 February 2014
2014/15 Hong Kong Budget Analysis: Visionary budget, cutting down "sweeteners" and few tax measures for individuals
[English] [Simplified Chinese] [Japanese]

H54/2014 - 26 February 2014
2014/2015 Hong Kong SAR Budget Highlights - Summary of allowances, deductions & tax rates
[English] [Simplified Chinese] [Japanese]

P189/2014 - 29 January 2014
New China-UK tax treaty enters into force
[English] [Simplified Chinese] [Japanese]

H53/2013 - 20 December 2013
Update on Inland Revenue Department's views on tax treatment of share-based payment transactions: Opportunities and uncertainties
[English] [Simplified Chinese] [Japanese]

P188/2013 - 19 December 2013
MOF and SAT issue new VAT reform rules
[English] [Simplified Chinese] [Japanese]

H52/2013 - 22 November 2013
Hong Kong CFA holds unrealized gains not chargeable to profits tax
[English] [Simplified Chinese] [Japanese]

P187/2013 - 9 October 2013
SAT issues guidance on application of VAT exemption treatment
[English] [Simplified Chinese] [Japanese]

P186/2013 - 27 September 2013
China (Shanghai) Pilot Free Trade Zone: Open for Business
[English] [Simplified Chinese] [Japanese]

P185/2013 - 6 September 2013
SAT issues guidance on application of zero-rated VAT treatment
[English] [Simplified Chinese] [Japanese]

H51/2013 - 22 August 2013
Development of Islamic finance in Hong Kong
[English] [Simplified Chinese]

P184/2013 - 26 July 2013
China relaxes foreign exchange procedures on outbound payments for trade in services
[English] [Simplified Chinese] [Japanese]

P183/2013 - 3 June 2013
MOF and SAT issue new regulations on nationwide implementation of VAT reform on transportation and modern services sectors
[English] [Simplified Chinese] [Japanese]

P182/2013 - 27 May 2013
New Guidance Clarifies IIT Treatment of POst-Acquitsition Capitalization of Undistributed Profits or Reserves
[English] [Simplified Chinese] 

P181/2013 - 17 May 2013
SAT clarifies when a secondment arrangement creates a PE
[English] [Simplified Chinese] [Japanese]

P180/2013 - 8 May 2013
SAT issues guidance on beneficial ownership of dividends under tax arrangement with Hong Kong
[English] [Simplified Chinese] [Japanese] 

H50/2013 – 27 February 2013
2013/14 Budget Analysis: Compassionate, pragmatic and cautious with clear positioning of Hong Kong
[English] [Simplified Chinese] [Japanese]

P179/2013 - 4 February 2013
SAT further clarifies EIT filing requirements for enterprises with branches
[English] [Simplified Chinese] [Japanese]

P178/2013 - 24 January 2013
SAT updates guidance on application of capital gains article in China’s tax treaties
[English] [Simplified Chinese] [Japanese]

P177/2013 –17 January 2013
SAFE simplifies rules on administration of foreign exchange for direct investment
[English] [Simplified Chinese] [Japanese]

H49/2013 – 4 January 2013
Hong Kong court disallows deduction for manufacturing assets used in China
[English] [Simplified Chinese] [Japanese]