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Payment 3.0 Era: HambitPay Upgrades Crypto Payment Interface and Launches Global Partnership Program

SHENZHEN, CHINA – Media OutReach – 20 October 2021 – Recently, HambitPay, a crypo payment platform from Singapore, announced the launch of its global partnership program.

Unlike coinbase, binance, etc., which initially centered on exchange business and only later derived payment business, HambitPay has been focusing on the research and development of crypto payment technology since its establishment, capitalising Singapore’s geographical advantages as an international financial center, and promoting a new payment ecosystem in Southeast Asia and the world beyond. The global partnership program launched this time is also a leap forward towards this goal.

 

Blockchain is an emerging industry that aggregates many tracks, and HambitPay choose to go all in on crypto payments for good reasons. A spokesperson of Hambitpay said that HambitPay values the huge market potential that is about to explode for crypto payments. According to the report “Digital Assets Primer: Only the first inning” released by Bank of America,  the cryptocurrency and decentralised financial services industry has grown “too large to ignore.” With a market capitalisation of $2 trillion and nearly 220 million users, the crypto sector alone is a spectacular size among digital assets. When we look at the digital asset market as a whole, the global digital asset management market is expected to reach $102.2 billion by 2026, according to a report by Indian market research firm Valuates Reports.

 

Hambitpay believes that digital payment has roughly gone through three stages of development:

 

1. Birth stage: With the development of the Internet, the first “online banking” payment initiated by traditional banks is the 1.0 stage of digital asset payment. People first need to have a bank account before they can open the corresponding online banking account. At the same time, in order to ensure the security of network assets, security hardware (such as network shields, etc.) is also required.

 

At this stage, online digital assets are linked to real assets in centralised financial institutions such as banks, and are characterised by slow transaction processing, small cross-platform transaction scope, the need to be linked to a bank account, and high fees.

 

2. Mobile payment stage: With the development of the mobile Internet, the payment 2.0 stage arrived with applications backed by a large user base, such as PayPal and Alipay. At this stage, people only need to have an application account, then they can make transactions and payments online, offline, and between different platforms.

 

The payment 2.0 stage is still under continuous development and improvement. People can not only conduct transactions in payment applications, but also through the API interface in various applications and mini programs.

 

Payment 2.0 has brought great convenience to people’s lives, but with the development of the market and the changing needs of users, Payment 2.0 is also facing some problems.

  • Due to the centralising trend of payment platforms, transaction and payment fees are increasing, which affects the free flow and further development of digital assets.
  • Payment 2.0 is still based on real bank accounts for transactions, so in an environment where cross-border payment and fiat currency payment are of limited capacity, it still cannot meet the needs of global payment of today.

Payment 3.0: Payment 3.0 marks the future direction of the financial and payments sector. The problems that arose in 1.0 and 2.0 will be solved in Payment 3.0. The solution is to establish a decentralised, digital financial native, and global payment platform.

 

Platforms of Payments 3.0 must meet the need for security, equality, and globalisation of digital assets. While enabling fast payments, the platform must also have fees low enough to facilitate the inclusion of financially underdeveloped countries and meet the requirements of financial fairness.

 

From the perspective of digital assets globalisation and financial fairness, decentralised and fair crypto payments have become the prototype for the Payment 3.0. HambitPay has already completed its in-depth layout in terms of technology, products, resources, etc. in this arena.

 

The prospect which HambitPay brings to users in the era of Payment 3.0

 

A Higher Degree of Business Globalisation

The last wave of information globalisation, marked by the rise of the Internet, greatly contributed to the development of economic globalisation. The advent of a new era of digital economy, marked by the free flow of capital, is bound to bring about an even greater globalisation of commerce. Through crypto payment platforms such as HambitPay, merchants can receive orders and payments from customers anywhere anytime, expanding their business footprints to any corner of the globe.

 

Enterprise-Level Commercial Crypto Payment Solution

Unlike the previous peer-to-peer transfer method of cryptocurrencies, HambitPay provides users with an enterprise-level commercial crypto payment solution that supports the simultaneous processing of multiple transactions initiated by different users in different regions, ensuring a smooth transaction experience in just a few minutes. It systematically solves many of the problems previously faced by industries such as cross-border e-commerce, cross-border online gaming, and global social networking, such as long billing periods for cross-border transactions, cumbersome settlement processes, and volatile exchange rates.

 

Lower Payment Costs Compared to Traditional Methods

For businesses, traditional cross-border payment methods have an average rate of no less than 3%, which has a significant impact on their profits. Crypto payment platforms such as HambitPay, on the other hand, can significantly reduce rates, helping businesses to save on payment costs and secure a more flexible profit margin.

 

Financial Fairness

The decentralised blockchain technology is currently the best way to achieve financial fairness, and Hambitpay has always been committed to achieving this end. Through HambitPay, qualified individuals or merchants from anywhere in the world can conduct cross-border business activities and enjoy the financial equality and openness brought by crypto payments.

 

Emerging crypto payment platforms such as HambitPay may help the market make the leap from the early stages of payments to Payment 3.0, helping users to capture more business opportunities through advanced payment methods.

#Hambit #HambitPay

Blueair’s HealthProtect™ air purifier tested to remove live SARS-CoV-2 Virus from the air, now protecting Singapore

  • Blueair’s most advanced air purifier to date, HealthProtect™, is now available in Singapore at major retailers, offline and online.
  • HealthProtect™ 7400-series air purifiers remove 99.99%1 of live airborne SARS-CoV-2 virus in controlled biosafety level 3 lab testing. The test was conducted by MRI Global, an independent US non-profit research organization, in a 13ft³ (0.37m³) chamber on live aerosolized SARS-CoV-2 virus. 
  • Blueair’s HealthProtect™ first major brand air purifier tested to remove live SARS-CoV-2 Virus from the airi.
  • Combination of most advanced air purification technologies on market.
  • Eradicates bacteria and viruses even on stand-by mode.
  • Prevents microbial growth thanks to unique GermShield™ technology.

SINGAPORE – Media OutReach – 20 October 2021 – Swedish air purification expert Blueair has launched HealthProtect™, its most advanced air purifier ever, in Singapore. Combining three new revolutionary technologies, the HealthProtect™ air purifier protects against viruses and bacteria even when it is on stand-by. The same technology also been adopted by a world class airport for the health and safety of its staff on the frontlines and travellers.

Says Henk D. in ‘t Hof, CEO, “At Blueair we are proud to be an industry leader in performance testing. Blueair has built its position as a leader within the air purification industry by 25 years of independent third-party testing of all innovations. Today there is no surprise that the COVID-19 pandemic is driving demand for air purifiers, and as such, our commitment to consumers is to deliver honest, factual, results on live SARS-CoV-2 virus that consumers can trust. Air purifiers should be used as an additional measure alongside the national and international guidelines.”

 

Superior removal of particles, chemicals and germs – using 55% less energy

HealthProtect™ uses HEPASilent Ultra™, Blueair’s most advanced filtration technology ever. This technology combines electrostatic and mechanical filtration to kill 99%A of viruses and bacteria, and remove dust, pollen, dander, mold, VOCs, and odors. Compared to traditional “true HEPA” filtration used in most air purifiers, HEPASilent Ultra™ silently delivers 50% moreB clean air and uses 55% less energyC.

 

Eradicates viruses and bacteria – even on standby

Even when the HealthProtect™ air purifier is on standby, the GermShield™ technology proactively monitors the room and automatically activates when conditions are optimal for germ growth. GermShield™ uses a low air draft to ensure no new growth of germs, and plasma charging to killD existing viruses and bacteria on both the filters and interior surfaces.

 

MoreB clean air to every corner of the room

Unlike other air purifiers that only push clean air to a small part of the room, the (patent-pending) SpiralAir™ outlets are uniquely engineered to deliver 360°, omni-directional, airflow quickly circulating moreB clean air to every corner of the room (based on recommended room size and AHAM standard of five Air Changes per Hour).

 

Smart features for a clean, connected home

Using geofencing technology, HealthProtect™ goes into standby mode when you leave the house and turns back on as you approach home, ensuring clean air when you arrive. Smart features like (patent-pending) “Clean air ETA” and real-time pollutant tracking of fine particles (PM1 – 2.5) like smoke, bacteria and viruses and coarse particles (PM10) such as dust, pollen and spores helps you to understand how household activities and cleaning product choices are impacting your air quality. HealthProtect™ is easily voice-controlled by Amazon Alexa and Google Home, or remotely from the Blueair app.

 

Even the filters are smart in HealthProtect™, equipped with a smart RFID chip to accurately monitor filter status. When it’s time to replace the filter, the Blueair app will send you an alert and allow you to re-order at the touch of a button.

 

Whisper-silent clean air delivery for a good night’s sleep

Air purifiers are generally recommended to be placed in the room where most time is spent. This is most often the bedroom. Many air purifiers, however, cannot clean the air without making a lot of noise. The HealthProtect™ uses HEPASilent Ultra™ filtration technology to deliver its powerful filtration performance quieter than a whisper (30 dB) on the lowest setting and a normal conversation (65 dB) on the highest. The smart night-mode will optimise the setting and turn off any disturbing light that could affect a good night’s sleep.

 

Designed in Sweden

Every component is uniquely engineered in Sweden to provide the highest performance and energy efficiency. Blueair’s Swedish heritage is also apparent in the choice of sustainable, high-quality materials and thoughtful design features such as easy to clean pre-filters and hidden wheels.

 

HealthProtect™ is now available in Singapore at Tangs, Takashimaya, Harvey Norman, Best Denki, BHG, Mega Discount Store, Lazada and Shopee.

 



1 Tested in a 13ft³ chamber only on a Blueair HealthProtect 7400. HealthProtect has not been proven to kill SARS-CoV-2 or reduce or prevent the transmission of COVID-19.​

i Tested in a 13ft³ chamber only on a Blueair HealthProtect 7400. HealthProtect has not been proven to kill SARS-CoV-2 or reduce or prevent the transmission of COVID-19.

A  Tested on the filter media. Deactivation of germs within natural flora (excluding viruses) under normal temperature and humidity conditions. Blueair air purifiers have not been tested against Coronavirus, and Blueair does not claim to capture, remove, or kill SARS-CoV-2.

B Based on testing of particle Clean Air Delivery Rate (pCADR according to GB/T18801-2015) in HealthProtect™ 7400 model at the same fan speed, compared to using H13 true HEPA filtration in the same unit.

C Based on testing of energy consumption (W) and noise levels (dB, according to ISO 3743) in HealthProtect™ air purifier with the same particle Clean Air Delivery Rate (pCADR according to GB/T18801-2015), compared to using H13 true HEPA filter in the same unit.

D Deactivation of bacteria (Staphylococcus albus) and virus (MS2 bacteriophage). Blueair air purifiers have not been tested against Coronavirus, and Blueair does not claim to capture, remove, or kill SARS-CoV-2.

About Blueair

Blueair is a world leading producer of air purification solutions for home and professional use. Founded in Sweden, Blueair delivers innovative, best-in-class, energy efficient products and services sold in over 60 countries around the world. Blueair is part of the Unilever family of brands. October 2021 marks 25 years of Blueair providing clean air for the next generation. Blueair celebrates the fight for freedom to breathe and continue to live by their purpose for the next coming years. www.blueair.com/sg

To learn more about Blueair’s test conducted by MRI Global visit: www.blueair.com/us/coronavirus.html

#Blueair

Singapore-based IN Financial Technologies Announces the Launch of INFT

SINGAPORE – Media OutReach – 20 October 2021 –  Singapore-based IN Financial Technologies launches INFT, a secured one-stop business solutions platform to start-ups and Micro, Small and Medium Enterprises (MSMEs) through filling the financing and banking gap, which allows entrepreneurs to focus on their core businesses.

We are witnessing a paradigm shift in the business landscape in Southeast Asia. With the rampant emergence and adoption of new technologies, start-up entrepreneurs are the new catalyst for the growth of regional economies. These change-drivers are constantly on-the-go and thus require seamless, hassle- free solutions to manage their businesses more efficiently. Headquartered in Singapore, a financial hub within the region, IN levels the playing field for businesses in any sector to accessible, efficient, transparent financial solutions encrypted in a single platform. During COVID-19, many traditional MSMEs businesses were affected – they are faced with immense pressure to do things differently and to go digital, and many struggled.

 

IN’s solutions are perfectly poised to digitalize and empower these MSMEs via a unified portal and application, and to improve employer to employee’s experience in transitioning to digitalization. By providing a whole range of digital solutions aimed at streamlining business mechanisms, entrepreneurs are able to adopt a hands-free approach for the more administrative tasks. IN offers digital solutions to effectively achieve entrepreneurs’ needs with the help of technology. Such time and cost-effective solutions work efficiently to give entrepreneurs and their employees a peace of mind, enabling them to better focus on client-facing issues and other aspects which require a more personal touch. This way, MSMEs are better able to concentrate on running their businesses without having to allocate time for menial, time-consuming admin tasks.

 

IN aims to provide solutions targeted to aid entrepreneurs in one central app including features such as Manage, Access, Send and Spend. It is designed to solve entrepreneurs’ challenges with a suite of solutions designed to satisfy your every business need. IN’s 24/7 customer support on the platform offers round-the-clock support specifically dedicated to start-ups to tackle any concerns and queries anytime, anywhere.

 

While the company promises to deliver exceptional solutions to its clients, it has also resolved to deliver the best value to help them scale exponentially. With international money transfer rates greatly cheaper than traditional banks, a bird’s eye view on Spend Management via a smart dashboard, Teams Management feature, highly competitive FX rates, and innovative features like ‘pay only when you use’ for their cash line financing, their work is truly aligned with the aspirations of entrepreneurs.

 

IN combines the best of breed synergies from each of these niches and beyond, tailoring them to the specific needs of start-ups and SMEs. IN is ready to deep-dive into supporting its SME partners to navigate these challenges within their first year of operation. Besides helping business owners manage their operations and processes, IN also offers meaningful solutions to better manage their lives. The company has designed the platform with specific communities in mind, e.g., start-up founders, work-from-home entrepreneurs, online traders, and more. Now entrepreneurs can focus on what’s most important: growing their business! With the rise in popularity of ESG (Environmental, Social and Governance) practices, IN will be doing its part and championing such efforts through our future suite of ESG focused financing services.

About IN

Launched in 2020 by Singapore-native entrepreneurs, Eldwin and Roy, who have more than two decades of experiences in technology, retail banking and financial industry, IN aims to level the playing field for start-ups and SMEs to grow. They have one simple mission to empower Micro, Small and Medium enterprises in Asia to digitalize their businesses, and to break down financial access barriers. The flexible and secure IN ecosystem offers a competitive and attractive pricing, and the best-in-class financial solutions to empower entrepreneurs to focus on their core business.

#IN

Premium UK CBD brand Infused Amphora expands and launches in Hong Kong

  • Expansion: Amphora Health Ltd introduces its high-quality cannabidiol (CBD) brand, Infused Amphora, to the Hong Kong marketplace. Infused Amphora offers a range of premium CBD oil tinctures and vape cartridges
  • Partnership: Distribution partnership established with Smart CBD, one of the largest CBD specialty stores in Asia
  • Products: Exciting range of wellness products that contain 100% organic and plant-based ingredients, designed to cater to individual lifestyle needs

 

HONG KONG SAR – News Direct – 20 October 2021 – Premium British CBD wellness company, Amphora Health, is pleased to announce they have secured the company’s first sales in Hong Kong of its 100% owned brand, Infused Amphora. With this first step into the Asian marketplace Amphora Health is initially offering two product categories under the Infused Amphora brand: ultra-high strength CBD infused oil tinctures and premium organic CBD vape cartridges.  CBD consumers in Hong Kong are now able to purchase any of the company’s four high-quality, effects-based formulations through our partnership with Smart CBD, the only CBD multi-retail store in Hong Kong.  These formulations are intended to support consumers with individual wellness goals and consist of the following four effects: 

  • INSPIRE: delivers an earthy and herbal vibe with lilac undertones, and a lemon-pepper nose. Allowing you to brainstorm, be unique, think differently or create a masterpiece.
  • PEACE: combines a sweet woody flavour with a tickle of green peppercorn and a clean grapefruit finish. You will feel the embrace of a warm hug that removes the edge off stress.
  • MEND: allows you to slip into a relaxing bath of sweet stone fruits, savory herbs and a pine finish. Find relief from tension and release muscular aches and pains.
  • ZZZ: offers the sensation of walking through a forest after the rain. Like the perfect cup of tea to be taken at bedtime – hints of juniper and lemon.  Removing the day’s worries and helping you to drift into a peaceful sleep.

Throughout 2020 Amphora Health launched a broad range of CBD products across the United Kingdom and the European Union. The company is now leveraging its global network of fulfillment and supplier partners to enable its international growth. Their strategic entry into Hong Kong enables Amphora Health to take advantage of the expected global CBD & Hemp wellness market which is forecasted to reach USD $13.4 billion by 2028 – with the Asia Pacific region representing a sizeable portion of this opportunity. Their Infused Amphora product line is available through retail locations and online marketplaces.

Angus Taylor, CEO of Amphora Health, commented “Over the past year we have focused on establishing Infused Amphora as a leading CBD brand in the United Kingdom and European Union. From this strong foundation we are now positioning Infused Amphora as a leading global CBD brand with plans to extend our business strategy to other countries in the Asia-Pacific region. Hong Kong presents Amphora Health with a tremendous opportunity to expand our presence with a range of additional products, including a therapeutic sports cream and CBD-infused mints.”

David Wong, Co-Founder of SmartCBD, commented “We are thrilled to partner with Amphora Health and establish their presence in Hong Kong. Our team has more than 10 years of retail experience in health and supplements, while our E-Commerce websites have over 1.5 million cumulative users, and we also have three physical stores at the heart of Hong Kong’s bustling areas Mong Kok, Kwun Tong and Causeway Bay.

SmartCBD has a deep understanding of the health needs of the Hong Kong people. In our experience, the local CBD market is growing steadily as consumers seek out natural wellness solutions. It is exciting to be at the spearhead of this emerging industry while working with a brand partner we trust.”

Amphora Health is actively looking to collaborate and partner with potential Brand Ambassadors on the many potential wellness benefits and financial opportunities of hemp-derived CBD oil. If interested, please send inquiries to  clientcare@infusedamphora.com

1 Each product comes with a Eurofins Certificate of Analysis and carries the ILAC (International Laboratory Accreditation Cooperation) Mutual Recognition Arrangement and UKAS (UK’s National Accreditation Body) marks.

About Amphora Health and the Infused Amphora Brand

Infused Amphora is a premium CBD wellness brand formulated in the UK, owned by Amphora Health LTD, a global health-and-wellness product entity business.

Infused Amphora is dedicated to providing all-natural, symptom-targeting and high-quality CBD products. Elevating users on their wellness journeys, each product is designed with a specific purpose, whether it’s sparking creativity, relieving stress, calming their thoughts before bed, or soothing muscle aches & pains.

With only two simple ingredients (CBD distillate sourced from 100% organically grown hemp and plant-based terpenes to supply that beneficial entourage effect) we keep our customer’s health as our top priority. All of our products have zero harmful additives & solvents, are nicotine-free, pesticide-free, and THC-free to ensure no intoxicating effects, just pure bliss in every breath.

Further information visit: www.infusedamphora.com or

Follow us on Facebook, Twitter, Instagram, YouTube and LinkedIn.

#AmphoraHealth #InfusedAmphora

About Smart Supplement

Smart Supplement was established in 2015, and over the past six years has quickly risen to become one of the most popular platforms in Hong Kong for sports and health supplements. Smart Supplement actively seeks innovative, high-quality health products to present to its customers, and embarked on their journey into CBD products in 2020 with an all-new CBD-focused sub-brand – SmartCBD.

Laos Receives More Funding for Business and Trade to Assist in Covid-19 Recovery

World Bank Assists Laos with Covid-19 Recovery

The World Bank and the Government of Laos have agreed to scale up a Competitiveness and Trade Project that will assist businesses in Covid-19 recovery.

Ev Dynamics Delivers Over 70 Electric Minibuses to the Philippines

HONG KONG SAR – Media OutReach – 19 October 2021 – Ev Dynamics (Holdings) Limited (the “Company”, Stock Code: 476, together with its subsidiaries, collectively “Ev Dynamics” or the “Group”), a provider of new energy vehicles and integrated technology solutions, has already delivered over 70 units of 6.5-meter COMET electric minibuses to the Philippines.

 

Ev Dynamics’ Chongqing plant is at full steam to meet increasing overseas order volumes

 

Ev Dynamics will provide not less than 500 units of the 6.5-meter COMET electric minibus to the Philippines and Malaysia by March 2023

 

Ev Dynamics is fully armed to complete sales orders from the Philippines and overseas markets

 

The delivery is part of the long-term supply agreement signed in March 2021 between the Company and GET Worldwide Inc. (“GET Worldwide”), following the first batch of COMET electric minibuses supplied to Metro Manila and Davao, the Philippines in December 2020. Under the supply agreement, the Company will provide GET Worldwide no fewer than 500 vehicle units within 24 months from the effective date of the agreement. The electric vehicles will be mainly used in the Philippines and Malaysia.

Freddie Tinga, CEO of GET Worldwide, said: “The Philippines alone could have a demand of at least 100,000 units of this type of vehicle. We have to replace over 300,000 old gasoline mini-buses (Jeepneys).”

Miguel Valldecabres Polop, CEO of Ev Dynamics, said: “Our production plant in Chongqing, which boasts sufficient capacity and advanced technologies, has been operating at full steam to meet the increasing volume of overseas orders. Though our production schedule and fulfilment of orders have been interrupted by the COVID-19 pandemic, our output has been picking up steadily thanks to the reliable supply chains in the PRC. We are confident that we can complete the sales orders from the Philippines and other orders for e-platforms and e-buses elsewhere overseas. The future is very promising for our Company.”

John Ma, COO of Ev Dynamics, said: “The COMET is the outcome of 3 years of hard development of our R&D team. The task was to create a vehicle with a very low cost and top technology. The COMET has a complete powertrain developed by the Company and most important the VCU (Vehicle Control Unit) or the brain that operates the complete bus.”

For the European market, the Company’s 12-meter E-Bus model has passed the homologation tests of the Economic Commission of Europe. Leveraging the business network and experience of strategic partner Quantron AG, the Group believes the high-performing and environmentally friendly bus will be welcomed in the European market as a solution to replace diesel buses currently in use.

In addition, the Group has secured a sizable order for 12-meter e-platforms and 12-meter city buses from Latin America.

About Ev Dynamics (Holdings) Limited (Stock Code: 476)

Ev Dynamics (Holdings) Limited is a pioneer and a prominent player in China’s new energy commercial vehicles market, as well as a whole-vehicle manufacturer of specialty passenger vehicles and new energy passenger vehicles. It is an integrated driving and logistics solutions provider with a solid technological foundation in diverse areas including new energy platform power systems and their key components. The Group has a production base in Chongqing and it has developed its sales network in Mainland China, Hong Kong, Asia Pacific and South America.

#EvDynamics

Cheng & Cheng Taxation Reveals How Hong Kong Can Help Avoid Double Taxation in Cross-Border Business

HONG KONG SAR – Media OutReach – 19 October 2021 – Transfer pricing and foreign withholding tax are generally the two most important tax considerations when making outbound investments and engaging in cross-border business. While the new Hong Kong transfer pricing law has been covered in August 2020 (https://henrykwongtax.com/article/hong-kong-codification-of-transfer-pricing-law/), Cheng & Cheng Taxation Services Limited (“Cheng & Cheng’s Taxation”) will further reveal how a Hong Kong company can help multinational corporations (MNCs) reduce their double taxation risk and thus the overall effective tax rate, with the below discussion areas:

  • Special features of the Hong Kong taxation system,
  • inbound investment into Mainland China and other Asian countries,
  • three examples of how Hong Kong can reduce foreign withholding tax and double taxation risk when doing business in Asia and
  • how to apply for a Hong Kong Tax Residency Certificate

A three-minute video relating to each discussion area have been prepared for the better understanding of the issues. Please refer to this link (https://henrykwongtax.com/home/trc-videos/) to access to the videos.

 

Special features of the Hong Kong taxation system

 

Hong Kong is a popular jurisdiction for investment holding companies and intra-group trading companies.

 

Most MNCs have set up companies and maintain small-scale operations in Hong Kong even though Hong Kong is not their major market in Asia. Here the explanation of the rationale.

 

Local tax law

  • Dividend income and capital gains are taxed at a 0% tax rate in Hong Kong;
  • No withholding tax on dividends, interest, service income or trading profits are imposed in Hong Kong. Only royalties are subject to withholding tax and a low tax rate of 2.475% to 4.95% will usually apply;
  • Hong Kong profits tax (corporation) and salaries tax (individual) are among the lowest rates globally, with maximum tax rates set at 16.5% and 15%, respectively. For the first HK$2 million of profits, a half tax rate of 8.25% applies to a Hong Kong corporation.

Hong Kong adopts the territorial concept, rather than the worldwide taxation system. Generally, only Hong Kong–sourced profits are subject to tax in Hong Kong. This is one of the most effective ways of avoiding double taxation if the operations of the Hong Kong based company are principally performed outside Hong Kong and foreign tax has been paid.

 

International presence

Hong Kong has an extensive Comprehensive Double Taxation Agreement (DTA) network with Asian countries. A total of 45 jurisdictions have already entered into DTAs with Hong Kong. A full list of DTA partners can be found on our website: (https://henrykwongtax.com/home/hong-kong-tax-treaty-network/)

 

Unlike offshore jurisdictions, such as the British Virgin Islands, Hong Kong is located in the heart of Asia and offers an abundance of finance and trade support professionals. Setting up substance in Hong Kong to fulfil the latest international tax requirements is relatively simple and convenient.

 

For these reasons, Hong Kong is the first place to consider when an MNC expands into Asia, in particular into Mainland China.  

 

Inbound investment into Mainland China and other Asian countries

 

Hong Kong is a good platform for an MNC to invest in Mainland China.

 

As a general rule, an MNC would either set up a subsidiary, namely a wholly foreign- owned enterprise (WFOE), or a representative office (RO) in Mainland China. Here Cheng & Cheng’s Taxation will explain how a Hong Kong entity can help reduce overall tax liabilities.

 

Subsidiary: Wholly foreign-owned enterprise

When an MNC plans to establish production bases or trade with customers in Mainland China, it would normally set up a WFOE there because of that country’s VAT tax system.

 

Typically, a Hong Kong intermediate holding company will be set up to invest in the WFOE in Mainland China, for the following reasons:

  • Dividends, interest and royalties paid to non-residents of Mainland China are generally subject to 10% withholding tax in that country. If the recipient is a Hong Kong tax resident, the withholding tax can be reduced to between 5% and 7% under the Double Taxation Agreement (DTA) between Mainland China and Hong Kong;
  • Mainland China offers preferential treatment to Hong Kong taxpayers under the DTA benefits;
  • As Hong Kong is part of the Greater Bay Area, it is relatively easy to set up substance in Hong Kong to support operations in Mainland China;
  • As mentioned above, Hong Kong does not impose tax on dividend income or capital gains. There is also no withholding tax on dividends.

Representative office

When an MNC wants to set up a client liaison or back office in Mainland China, they could invest in the form of a representative office (RO). An RO is not expected to derive any income and is not a separate legal entity. Using a Hong Kong headquarters to install an RO in Mainland China is a reasonable option.

 

Despite the fact that it is a cost centre, an RO in Mainland China is still required to pay corporate income tax based on a deemed profits ratio. As such, double taxation issues may arise.

 

As Hong Kong and Mainland China are DTA partners, Both a tax deduction on RO expenses and a tax credit can be claimed to offset Hong Kong profits tax liabilities, provided that the Mainland China RO assists in the operations of the Hong Kong entity. This is an effective way to avoid double taxation in Hong Kong and Mainland China.

 

Doing business in Asia: Reduction of foreign withholding tax

 

Hong Kong is in a good position to reduce foreign withholding tax in Asia as Hong Kong has entered into DTAs with most Asian countries.

 

Apart from Mainland China, other developing countries in Asia such as India and Indonesia are also attracting MNCs due to their rapid economic growth. However, the problem is that, without a Double Taxation Agreement (DTA), withholding tax on income repatriated from these countries is generally very high.

 

With years of experience, Cheng & Cheng’s Taxation identified three common scenarios in which a Hong Kong tax resident can help reduce foreign tax liabilities.

 

Scenario 1: Service fee arrangements

Take a service provider in Hong Kong, maintaining several clients in Indonesia as an example. Many Hong Kong companies are unaware that they have paid withholding tax in Indonesia on their service income, since their foreign clients typically settle the tax liabilities on their behalf.

 

A Hong Kong company can help reduce their Indonesian withholding tax on service income if it can present a Tax Residency Certificate (TRC) to the Indonesian Government. Normally, the withholding tax of 20% can be reduced to between 5% and 10%.

 

Further, a tax credit is available against the Indonesian withholding tax paid to offset Hong Kong profits tax liabilities. As such, with proper tax planning, the double taxation issue should not arise.

 

Last but not least, similar arrangements can also be applied to other Asian countries, including India and Malaysia.

 

Scenario 2: Loan financing arrangements

This scenario uses a company making interest-bearing loans to its group company in Japan as an example. In Japan, interest paid by a Japanese company to non-residents of Japan is generally subject to 20% withholding tax. Under the DTA between Hong Kong and Japan, the withholding tax rate can be reduced from 20% to 10%.

 

As well as the tax credit method mentioned above, double taxation issues may also be resolved by pursuing an offshore claim on interest income in Hong Kong. Under the provision of credit test, interest income on loans first made available to the borrower outside Hong Kong could be offshore sourced and non-taxable under Hong Kong profits tax.

 

As most countries in Asia charge withholding tax on interest paid to non-residents, a TRC can generally help in most of the loan arrangements.

 

Scenario 3: Royalty arrangements

Royalty arrangements are common among Western brand owners when they cooperate with Asian business partners to expand into the Asian market. This can involve franchise arrangements, sales of branded products, and game licensing arrangements.

 

More importantly, MNCs appear more eager to enter into royalty arrangements with Hong Kong entities of their Asian partners, especially when dealing with countries that have a foreign exchange control system such as in Mainland China. An MNC may request that their Asian partner establishes a Hong Kong entity to pay their royalties, which can lead to a significant income and expense mismatch as the income is earned by Mainland China or other Asian entity, while the royalty expenses are borne by the Hong Kong entity. Income and expense mismatches without thorough group recharge arrangements will lead to significant tax inefficiencies and risk. 

 

Similar to interest income, royalties are subject to withholding tax in most Asian countries. Hong Kong also imposes a royalty withholding tax but, based on our experience, the withholding tax can be used to offset the corporate income tax of the recipients in their respective Western countries. However, it is important to examine the relevant tax administrative procedures in Hong Kong.

 

As royalty arrangements are generally very complex, it is important to look for a tax partner with international tax experience in order to plan ahead effectively.

 

How to apply for a Hong Kong Tax Residency Certificate

 

In above discussion, becoming a Hong Kong tax resident and obtaining a Tax Residency Certificate (TRC) is an important part of international tax planning. Having said that, not every Hong Kong company is a Hong Kong tax resident.

 

In order to obtain a TRC, a company has to exercise its management and control in Hong Kong. There are no specific requirements set out by the Hong Kong Inland Revenue Department (IRD), but in general, the IRD expects a Hong Kong tax resident to maintain a Hong Kong–based director and staff, as well as an office located in Hong Kong.

 

As the IRD is getting more stringent about issuing TRCs, it is important to seek professional advice from tax advisor before making application.

 

For more details of the TRC application process, please visit our website at (https://henrykwongtax.com/home/our-services/hong-kong-tax-residency-certificate/).

 

About Cheng & Cheng Taxation Services Limited

Cheng & Cheng is one of the top 20 accounting firms in Hong Kong, with over 300 staff in Hong Kong and Mainland China. We are the principal auditor for 20 listed corporations in Hong Kong and the tax advisor for over 80. We specialise in providing Hong Kong, Mainland China and international tax advisory services, as well as transfer pricing services to international clients. If you would like to know more about applying for a Tax Residency Certificate in Hong Kong, or seek tax advice from our tax experts, please do not hesitate to contact us by email (henry.kwong@chengtax.com.hk) or phone (+ 852 3962 0114).

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Sunlight Real Estate Investment Trust Operational Statistics for the First Quarter of the Financial Year 2021/22

HONG KONG SAR – Media OutReach – 19 October 2021 – Henderson Sunlight Asset Management Limited (the “Manager“), as manager of Sunlight Real Estate Investment Trust (“Sunlight REIT“), announces the operational statistics of Sunlight REIT for the first quarter of the financial year 2021/22.

At 30 September 2021, the overall portfolio occupancy rate of Sunlight REIT was 93.8% (30 June 2021: 93.7%). Office occupancy rate slightly improved to 93.1% (30 June 2021: 92.4%), while retail occupancy rate registered a mild decline to 95.3% as compared to 96.5% at 30 June 2021.

 

The overall passing rent of Sunlight REIT’s portfolio was HK$46.8 per sq. ft. at 30 September 2021, down 1.9% from the last quarter. Reflecting the lingering impact of COVID-19, office and retail portfolios recorded negative rental reversions of 5.3% and 5.4% respectively.

 

Occupancy rate of Dah Sing Financial Centre stood at 88.5% (30 June 2021: 88.3%), while demand for certain Grade B office properties continued to recover, as evidenced by the improvement in occupancy rates of 235 Wing Lok Street Trade Centre and Java Road 108 Commercial Centre to 94.1% and 98.1% respectively. On the Kowloon side, The Harvest and Righteous Centre were almost fully let at 30 September 2021; however, vacancy rate of The Harvest is expected to increase by December 2021 as its core retail tenant has decided not to renew its tenancy upon expiry.

 

On the retail front, the occupancy rates of Sheung Shui Centre Shopping Arcade and Metro City Phase I Property at 30 September 2021 were 94.1% and 95.4% respectively, while their corresponding passing rents were HK$101.6 per sq. ft. and HK$56.0 per sq. ft..

 

Remarks: Attached operational statistics of Sunlight REIT for the first quarter of the financial year 2021/22.

 

Operational statistics for the first quarter of the financial year 2021/22

 

Property

Location

Occupancy Rate (%) 1

Passing Rent (HK$/sq. ft.) 2

 

 

at 30 Sep 21

at 30 Jun 21

at 30 Sep 21

at 30 Jun 21

Office

 

 

 

 

 

Dah Sing Financial Centre

Wan Chai

88.5

88.3

43.5

44.0

Strand 50

Sheung Wan

95.3

95.8

32.1

32.1

The Harvest

Mong Kok

100.0

100.0

53.0

53.2

135 Bonham Strand Trade Centre Property

Sheung Wan

92.5

93.1

27.8

27.9

Winsome House Property

Central

100.0

94.3

39.7

42.7

Righteous Centre

Mong Kok

99.3

100.0

33.7

33.9

235 Wing Lok Street Trade Centre

Sheung Wan

94.1

88.6

20.4

20.9

Java Road 108 Commercial Centre

North Point

98.1

96.1

24.9

24.9

On Loong Commercial Building

Wan Chai

100.0

100.0

30.5

31.2

Sun Fai Commercial Centre Property

Mong Kok

100.0

100.0

21.7

21.7

Wai Ching Commercial Building Property

Yau Ma Tei

94.5

91.7

17.2

17.4

Average

 

93.1

92.4

36.3

36.7

 

 

 

 

 

 

Retail

 

 

 

 

 

Sheung Shui Centre Shopping Arcade

Sheung Shui

94.1

95.3

101.6

104.2

Metro City Phase I Property

Tseung Kwan O

95.4

97.6

56.0

56.7

Kwong Wah Plaza Property

Yuen Long

98.5

97.7

53.1

53.5

Beverley Commercial Centre Property

Tsim Sha Tsui

81.9

77.5

31.9

32.8

Supernova Stand Property

North Point

100.0

100.0

57.2

57.2

Average

 

95.3

96.5

69.1

70.4

Average

 

93.8

93.7

46.8

47.7

Notes:

1.       Calculated on the basis of occupied gross rentable area (“GRA“) as a proportion of total GRA on the relevant date.

2.       Calculated on the basis of average rent per sq. ft. for occupied GRA on the relevant date.

About Sunlight REIT

Sunlight REIT (Stock code: 435) is a real estate investment trust authorized by the Securities and Futures Commission, and constituted by the amended and restated trust deed dated 10 May 2021 (the “Trust Deed“), and has been listed on The Stock Exchange of Hong Kong Limited on 21 December 2006. Sunlight REIT offers investors the opportunity to invest in a diversified portfolio of 11 office and five retail properties in Hong Kong with a total gross rentable area of over 1.2 million sq. ft.. The office properties are primarily located in core business areas, including Wan Chai and Sheung Wan, as well as in decentralized business areas such as Mong Kok and North Point. The key retail properties are situated in regional transportation hubs and new towns including Sheung Shui, Tseung Kwan O and Yuen Long.

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About the Manager

The Manager of Sunlight REIT is an indirect wholly-owned subsidiary of Henderson Land Development Company Limited. Its main responsibility is to manage Sunlight REIT and all of its assets in accordance with the Trust Deed in the sole interest of its unitholders.

Disclaimer: The information contained in this press release does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for units in Sunlight REIT in Hong Kong or any other jurisdiction.