Technical highlight

A 100% deduction under profits tax will be provided in the year of purchase for the capital expenditure incurred on the provision of eligible machinery. The proposal was contained in the Revenue Bill 2008 gazetted on April 25 2008). (Details)

According to the Business Registration Ordinance (Amendment: Levy Reduction) Order 2008. The Business Registration Certificate levy will be reduced from $600 a year to $450 a year with effect from March 14, 2008. (Details)

On 7 September 2005, the Inland Revenue Department signed a comprehensive agreement for avoidance of double taxation with Thailand. (Details)

The interest rate on the tax reserve certificate (TRC) is 0.0375% annually effective from 1 September 2003. (Details)

The Inland Revenue Department issued Departmental Interpretation & Practice Notes (DIPN) 41 on Taxation of Holiday Journey Benefits in August 2003 (Details)

The Inland Revenue Department issued Departmental Interpretation & Practice Notes (DIPN) 22 (revised) on Section 21A of Inland Revenue Ordinance in July 2003 (Details)

The Inland Revenue Department issued Departmental Interpretation & Practice Notes (DIPN) 9 (revised) on Major Deductible Items under Salaries Tax in September 2002 and DIPN 40 on Prepaid or Deferred Revenue Expenses in October 2002 (Details)

Listing rules

On 19 November 2004, the Hong Kong Exchanges and Clearing Limited issued the "Amendments to the Main Borad Listing Rules relating to code on corporate governance practices and rules on the corporate governance report". (Details)

On 31 March 2004, the Hong Kong Exchanges and Clearing Limited issued the "Amendments to the Main Borad Listing Rules relating to corporate governance issues, initial and contiuing listing obligations". (Details)

Companies Ordinance

With effect from 11 July 2008, provisions concerning incorporation of local companies in the Companies (Amendment) Ordinance 2004 will come into operation. New incorporation forms will be introduced on the same date.　

The Companies Registry has issued a revised 'Non-statutory Guidelines on Directors' Duties' in October 2007.

The Companies (Amendment) Ordinance 2003 was passed on 2 July 2003. Major changes include to permit the formation of a private company by one or more persons and to permit a private company to have only one director. (Details)

The Companies (Amendment) Bill 2002 sought to implement 17 recommendations raised by the Standard Committee on Company Law Reform. (Details)

HKGAAP

In August 2005, the Hong Kong Institute of Certified Public Accountants published issued the SME Financial Reporting Framework (SME-FRF) and Financial Reporting Standard (SME-FRS) which are standards of accounting practices for SMEs that qualify for reporting under the SME-FRF. (Details)

In December 2004, the Hong Kong Institute of Certified Public Accountants published the following new standards to converge with the International Financial Reporting Standards (IFRS) issued by the IASB effective for accounting periods on or after 1 January 2005:

HKAS 7 Cash Flow Statements

HKAS 17 Leases

HKAS 23 Borrowing Costs

HKAS 24 Related Party Disclosures

HKAS 30 Disclosures in the Financial Statements of Banks and Similar Financial Institutions

HKAS 31 Investments in Joint Ventures

HKAS 40 Investment Property

In April 2004, the Hong Kong Institute of Certified Public Accountaants has made an important step towards the harmonisation of local accounting standards with the international standards, by announcing its recent approval of a number of new Hong Kong accounting standard (HKAS). These standard will become effective for financial statements covering annual periods that begin on or after 1 January 2005. (Details)　