COVID-19 Hong Kong Economic Relief Measures

The HKSAR Government has announced a package of measures to support Hong Kong individuals and businesses affected by the COVID-19 outbreak. Read this document to understand the details.

Funding application for the second round of the Anti-epidemic Fund and other relief measures was approved by the Legislative Council Finance Committee on 18 April 2020.
Read more information at news.gov.hk

BVI Update

Please note that notice has been published in the BVI Gazette on 28 June 2019 advising that the date for compliance by companies incorporated before January 2019 has been extended to 1 October, 2019 (from 30 June 2019).

Employment related updates

Voluntary Health Insurance Scheme

Voluntary Health Insurance Scheme (VHIS) is a policy initiative implemented by the Food and Health Bureau to regulate individual indemnity hospital insurance products, with voluntary participation by insurance companies and the public.

Effective from 1 April 2019, Hong Kong salaries taxpayer who or whose spouse is the policyholder of a policy issued under a Certified Plan of VHIS may claim tax deductions up to HK$8,000 per insured person for the premiums paid in relation to the Certified Plan. The insured person of the Certified Plan should be the taxpayer or any specified relatives, which cover the taxpayer's spouse and children, and the taxpayer's or his/her spouse's grandparents, parents and siblings.

Update on BVI Economic Substance requirements

The Economic Substance (Companies and Limited Partnerships) Act, 2018 (“Act”) came into force in the BVI on 1 January 2019. The Act requires legal entities conducting “relevant activities” to demonstrate adequate economic substance in the BVI.

Relevant activities include banking, insurance, fund management, finance and leasing, headquarters business, shipping business, holding business, intellectual property business and distribution and service centre business. Entities which are resident for tax purposes outside of the BVI and limited partnerships that do not have legal personality are excluded.

Industry practitioners are expecting Regulations, Rules or formal Guidance Notes to be issued so as to receive further details and a clearer picture on how to practically implement the economic substance requirements. It is anticipated that draft guidance may be available before the forthcoming Easter holidays and education campaigns will be launched in the BVI and Hong Kong afterwards.

The Companies (Amendment) (No. 2) Ordinance 2018

Following a comprehensive exercise to rewrite the Companies Ordinance (Cap. 32) , the new Companies Ordinance (Cap. 622) (“New CO”) came into force on 3 March 2014. After more than 3 years of operations and receipt of feedback from various stakeholders, the Companies (Amendment) (No. 2) Ordinance 2018 (“Amendment Ordinance”) came into operation on 1 February 2019.

The Amendment Ordinance introduces revisions to the New CO and its subsidiary legislations to incorporate new developments, and amend some provisions to improve clarities and operation of the New CO and further facilitate business in Hong Kong.

You may click this link for highlights on the key changes introduced.

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