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KJFEM, Previously OCS Facilities Management, Now Offers Energy Management Solutions

SINGAPORE – Media OutReach – 23 February 2022 – Formerly an industrial and commercial cleaning services company, OCS Facilities Management has been rebranded into KJFEM after the acquisition by KJ Technical Services (KJTS) Group. Under the rebranded KJFEM, the company will now offer energy and facilities management services and building management in Singapore, on top of its previous suite of soft services, as part of KJTS Group’s expansion plans.

To improve energy and facilities management solutions for clients in Singapore, KJFEM is providing a more comprehensive range of services beyond what it currently offers, such as HVAC systems, energy retrofitting, and district cooling systems for temperature control. KJFEM also has vast experiences in HVAC and designs systems that provide the most efficient chill water rates. Leading a team of highly experienced engineers, KJFEM has extended their services to various industries, including education, pharmaceutical and healthcare, commercial and retail, industrial and manufacturing, hospitality, and aviation. And while the general market practice is to end obligations upon the defect liability period, KJFEM extends their services beyond fixed timeframes to guarantee performance and reliability for its clients in the long term.

On top of that, KJFEM is also embracing technology to be more transparent and effective in cost and performance management by developing its own in-house software. The application aims to improve efficiency and move away from manual operations that are prone to human error. It includes features such as a digital audit system and client request history tracking, which allows the company to be more flexible. With the use of technology, coupled with an experienced team that executes top-notch procedures, KJFEM plans to deliver tailor-made solutions that best suit their clients’ sector and organisational needs.

As industries such as energy management in Singapore continue to push forward with robotics and automation, KJFEM hopes to adapt to future technological advancements and adopt a more agile and collaborative approach in their business, fostering meaningful partnerships and delivering top-quality services to their clients.

For more info, please visit: https://www.kjfem.com.sg/.

#KJFEM

The issuer is solely responsible for the content of this announcement.

Zurich Hong Kong integrates ESG strategy into ILAS Scooping awards in Benchmark Wealth Management Awards 2021

  • Zurich Hong Kong is committed to sustainability and integrates ESG into its product development strategy
  • Its newest Investment-Linked Assurance Scheme has the highest number of ESG investment choices, with 19 ESG investment choices available, as compared to other similar products offered in the market1
  • Zurich Hong Kong won “Best-in-Class in Investment-linked Assurance Scheme (ILAS)” and “Responsible Insurer Award – Outstanding Responsible Insurer” and the Zurich Insurance Group won four other ESG awards in the Benchmark Wealth Management Awards 2021

HONG KONG SAR – Media OutReach – 23 February 2022 Zurich Insurance (Hong Kong) (“Zurich Hong Kong“) has long been committed in putting our sustainability vision into practice, and continue to push the boundary further in Environmental, Social and Governance (ESG) performance, to make scalable and lasting impact. Integrating ESG into its product development strategy, Zurich Hong Kong’s newest Investment-Linked Assurance Scheme (ILAS) has the highest number of ESG investment choices, with 19 ESG investment choices available, as compared to other similar products offered in the market1.

(From left to right) Jason Lee - Proposition Manager, Life Business, Geoffrey Au – CEO, Life Business, and Erik Choi - Head of Propositions, Life Business represented Zurich Hong Kong to receive the honors in the Benchmark Wealth Management Awards 2021.
(From left to right) Jason Lee – Proposition Manager, Life Business, Geoffrey Au – CEO, Life Business, and Erik Choi – Head of Propositions, Life Business represented Zurich Hong Kong to receive the honors in the Benchmark Wealth Management Awards 2021.


Geoffrey Au, CEO of Life Business, Zurich Hong Kong
, said, “According to the Global Risks Report 20222, which Zurich Insurance Group (“Zurich”) jointly developed with the World Economic Forum, ‘climate action failure’ is ranked as the number one long-term threat to the world and the risk with potentially the most severe impacts over the next decade. That is why as a responsible insurer, Zurich Hong Kong has been implementing measures to address the impacts of a changing climate, underpinned by our commitment in ESG, making us the ‘Responsible Insurer Award – Outstanding Responsible Insurer’ winner in the Benchmark Wealth Management Awards 2021.”

“We walk the talk and actively engage with our customers. We are proud that our ILAS product is having the highest number of ESG investment choices in the local market, thereby enabling our customers to invest responsibly to extend the positive impact wherever possible. As one of the pioneers and market leaders of ILAS in Hong Kong, our strengths in ILAS have been recognized as ‘Investment-linked Assurance Scheme (ILAS) – Best-in-Class‘ in the aforesaid Awards as well.”

As a Group, Zurich is taking global measures to accelerate cuts in carbon emissions from its operations, reflecting the urgent need to respond to the climate crisis. The Group aims to be a net-zero emissions business by 2050, in line with the Paris Agreement’s goal to limit global warming to 1.5°C. While Zurich’s operations have been carbon neutral since 2014, it is committed to reducing its remaining greenhouse gas emissions by 50% by 2025 and by 70% by 2029. These examples testify the Group’s wins in the Benchmark Wealth Management Awards 2021:
    • Climate Award – Outstanding Achiever
    • Environmental Contribution Award – Outstanding Achiever
    • Social Contribution Award – Outstanding Achiever
    • Overall ESG Top 10 Percentile Awards

    Apart from actions in combating climate change, Zurich Hong Kong will continue efforts in ESG in areas such as youth development, mental health support and community sustainability by engaging with our partners, customers, staff and the community.

    1 Statement based on comparison results as of January 3, 2022.
    2 Global Risks Report 2022 is published by World Economic Forum with the development with Zurich Insurance Group, Marsh McLennan and SK Group as well as National University of Singapore, University of Oxford’s Oxford Martin School and University of Pennsylvania’s Wharton Risk Management and Decision Processes Center, gathering insights from nearly 1,000 global experts and leaders with an analysis of key risks emanating from current economic, societal, environmental and technological tensions: https://www.zurich.com/en/knowledge/topics/global-risks/the-global-risks-report-2022

    About Zurich Insurance (Hong Kong)

    Zurich Insurance (Hong Kong) is part of the Zurich Insurance Group, with its presence in Hong Kong dating back to 1961. Since then, Zurich Insurance (Hong Kong) has been dedicated to serving the Hong Kong Community with a full range of flexible investment, life insurance and general insurance solutions for individuals, as well as commercial and corporate customers — attending to their insurance, protection and investment needs. Zurich Insurance (Hong Kong) is currently top five in the general insurance market1 and ranks fifth in the city’s ILAS market2. Please visit www.zurich.com.hk for more information of Zurich Insurance (Hong Kong).

    1 Annual statistics of the Insurance Authority on Hong Kong General Business from January to December 2020, based on gross premium.
    2 Annual statistics of the Insurance Authority on Hong Kong long term insurance business from January to December 2020, based on the number of policies and premiums of in-force business of investment-linked life insurance.

    About Zurich Insurance Group (Zurich)
    Zurich Insurance Group (Zurich) is a leading multi-line insurer that serves its customers in global and local markets. With about 56,000 employees, it provides a wide range of property and casualty, and life insurance products and services in more than 210 countries and territories. Zurich’s customers include individuals, small businesses, and mid-sized and large companies, as well as multinational corporations. The Group is headquartered in Zurich, Switzerland, where it was founded in 1872. The holding company, Zurich Insurance Group Ltd (ZURN), is listed on the SIX Swiss Exchange and has a level I American Depositary Receipt (ZURVY) program, which is traded over-the-counter on OTCQX. Further information about Zurich is available at www.zurich.com.

    #ZurichHongKong

    The issuer is solely responsible for the content of this announcement.

    George Liu, a veteran commodity trader, has been named the new Head of Derivatives at Babel Finance

    SINGAPORE – Media OutReach – 23 February 2022 – George Liu has been named head of derivatives at Babel Trading by crypto financial services provider Babel Finance, a newly formed role for the company’s trading arm.

    The move coincides with Babel Finance’s investment in developing more complex and tailored crypto-asset financial products with traditional finance features for institutional and HNWI clients and improving internal risk control and management protocols.

    George has over 15 years of expertise in commodities and metals trading and financial product structuring and has held top positions in London, Shanghai, and New York.

    The appointment comes amid Babel Finance’s push to create increasingly sophisticated and tailor-made crypto-asset financial products with traditional finance characteristics for institutional and HNWI investors and upgrade internal risk control and management practices.

    Because of George’s strong trading knowledge, Babel Finance’s crypto trading and lending will explore how traditional investing strategies transfer onto more widespread crypto assets like Bitcoin, Ethereum, and other cryptocurrencies.

    “I warmly welcome George as he joins the firm, bringing a unique perspective and an impressive track record in trading and serving clients. With George onboard, Babel will further enhance its leading position in crypto financial product innovation and in offering more customized products for clients according to their specific risk profile and requirements,” said Del Wang, founder of Babel Finance.

    Babel Finance financial services has recently launched more complex solutions to better meet the expanding demands of institutional and HNWI clients. The new offerings span from crypto market entrance tactics and position building to dip hunting, top searching, low-risk high-yield generation, and arbitrage-related strategies, as well as more discretionary management of crypto holdings.

    “It is an incredibly exciting time to join Babel as cryptocurrencies become increasingly mainstream. Bitcoin, in particular, is becoming more and more closely related to growth stocks. The volatile nature of the crypto market presents us with an ideal opportunity to offer clients of different risk appetites better investment solutions as an alternative and addition to other more traditional and stable asset classes,” said George Liu.

    With a monthly trading volume of US$8 billion equivalent, Babel Finance crypto trading is one of APAC’s major crypto options traders. Babel Finance’s Singapore trading team is rapidly growing, with more than 30 engineers and traders on board, many of whom, like George, come from Wall Street investment banks and trading firms. By the end of 2021, the firm’s worldwide trading volume market share will be 2% for spot trading, 3% for futures, and 15% for options, thanks to a strong position in derivatives.

    About Babel Finance

    Babel Finance is a global leading crypto financial services provider, offering institutional and HNWI investors professional services covering crypto lending and crypto trading. The company is backed by prominent investors, including Sequoia Capital China, Tiger Global Management, BAI Capital, Zoo Capital, Dragonfly Capital, and NGC Ventures. With a business focus in Asia and a business headquarters in Singapore, Babel Finance has established close cooperative relationships with major global exchanges, custodians, investment funds, and mining institutions.

    #BabelFinance

    The issuer is solely responsible for the content of this announcement.

    Monkeys Found Bagged Alive in Thailand 

    Monkeys found bagged alive in Thailand
    Monkeys found in bags are seen inside a crate in an abandoned house in Saraburi Province, Thailand February 17, 2022. Thai Department of Natural Parks, Wildlife and Plant Conservation (DNP)/Handout via REUTERS

    Nearly one hundred monkeys were found in an abandoned house in Thailand’s Saraburi Province, where the animals are believed to have been kept by wildlife traffickers.

    NBA All-Star LaMelo Ball and Memorigin partners to launch new watch brand Melofaith LaMelo Ball’s first-ever RARE Tourbillon watch

    HONG KONG SAR – Media OutReach – 22 February 2022 – The 20-year-old NBA All-Star LaMelo Ball made his appearance in the NBA All-Star Game held on last Saunday February 20. Basketball fans are eagerly awaiting his impressive performance. LaMelo Ball is currently playing for the Charlotte Hornets, after embarking on his NBA career since 2020. In just two years, he has clinched numerous awards: ESPY’s Breakthrough Athlete of the Year, NBA Rookie of the Year, and NBA All-Rookie Team. He is the also the 4th-youngest player to appear in the All-Star Game, earning him widespread attention as an elite young star.

    Caption

    NBA stars have always been looked to as more than just athletes, but instead as fashion faces which drive global trends forward. LaMelo Ball, who has always been passionate about fashion, launched his own designer lifestyle clothing brand LaFrance last year, and this year, he is adding another accolade to his resume by launching an international collaboration with Memorigin, a Hong Kong-based tourbillon watch brand, with the creation of a new high-end watch brand “Melofaith”.

    Melofaith introduces its first high-end fashion item – the “RARE Tourbillon”, designed in complete LaMelo Ball style. Using a strong fiery red as the primary color, the watch features a unique tonneau-shaped case and a stylish red camouflage rubber strap, breaking the tourbillon’s traditional notion of polished, genteel elegance.

    The skeleton dial is presented in street graffiti style and features numerous symbols of LaMelo Ball, including his first tattoo – the word “FEAR” and “GOD” on his wrist at the age of 16 – as well as a doodle of his name “Melo”. There is also a silhouette of LaMelo Ball in profile and the “number 1 with wings” symbolizing him as the “Golden Child”.

    The watch is available in two versions, the regular version with a more subdued PVD tonneau-shaped steel case in black and the diamond version with a tonneau-shaped steel case inlaid with 226 diamonds, making it a dazzling timepiece that suits different people.

    The watch is equipped with a hand-wound tourbillon movement with a 40-hour power reserve and a frequency of 28,800 vibrations per hour. The word “MELOFAITH” is engraved on the tourbillon, which makes the watch stand out without compromising its stability.

    The brand, named “Melofaith”, is coined from LaMelo Ball’s religious beliefs – his faith is his source of strength, inspiring him to face the challenges of every game with determination and perseverance. LaMelo Ball hopes to share his philosophy with fans through the creation of his brand. With religion being his spiritual pillar, faith and confidence are two indispensable elements that have allowed him to develop into an outstanding athlete.

    About RARE Tourbillon Watch

    Retail price: USD 6,800

    Model No.
    MO 0822

    Case
    Black PVD coated barrel-shaped stainless steel case
    Watch size: approx. 58 x 46mm
    Watch thickness: approx. 18.25mm
    Both sides sapphire crystal
    Water resistance: 5ATM

    Movement
    Flying tourbillon
    155 pieces of subassembly module and 18 jewels
    Frequency: 28800 oscillations/hour

    Features
    40 hours power reserve
    The tourbillon located at 6 o’clock rotates at a speed of 60s for one circle
    Manual winding mechanism

    Dial
    LaMelo Ball-themed dial
    LaMelo Ball’s tattoo design
    Graffiti style painting

    Strap
    Camouflage rubber strap

    About RARE Tourbillon Watch (Diamond version)
    Retail price: USD 20,000

    Model No.
    MO 0822

    Case
    Diamond-embedded barrel-shaped stainless steel case
    Watch size: approx. 58 x 46mm
    Watch thickness: approx. 18.25mm
    Both sides sapphire crystal
    Water resistance: 5ATM

    Diamond/Gem Setting
    White diamond quantity: approx. 226pcs approx. 1.9carats

    Movement
    Flying tourbillon
    155 pieces of subassembly module and 18 jewels
    Frequency: 28800 oscillations/hour

    Features
    40 hours power reserve
    The tourbillon located at 6 o’clock rotates at a speed of 60s for one circle
    Manual winding mechanism

    Dial
    LaMelo Ball-themed dial
    LaMelo Ball’s tattoo design
    Graffiti style painting

    Strap
    Camouflage rubber strap

    About Memorigin

    Memorigin is the first Hong Kong brand which only produces Tourbillon. The marvelous oriental sculpture merging with western top art of watchmaking creates a Tourbillon watch which has strong Hong Kong cultural character and is a blend of oriental and western cultures. Memorigin uses its in-house movement with its production process strictly controlled so that craftsmanship and quality are sanctioned by international professionals. All Memorigin watches are used with high quality materials from different countries; it has been arranged meticulously from a small part to the complete watch.

    Memorigin Tourbillon watches are designed by Hong Kong top designers and collectors with innovative concepts. Besides the traditional elegant style, it also adds cultural elements into the design, leading the oriental art to be international. In additions, Memorigin has a unique word carving technology: words can be engraved on the movement and can be preserved forever that the watch becomes unique and memorable.

    Official web site: www.memorigin.com

    Tel: (852) 29760108
    Address: Room 803-804, 8/F, Chai Wan Industrial City Phase 1, No. 60 Wing Tai Road

    #Memorigin

    V2Y Enters Non-Binding Agreement to Acquire General Insurance Business Portfolio

    Proposed acquisition of a local renowned insurance company’s general insurance business portfolio for about S$20 million
    Acquisition will provide its Insurtech business with cost and revenue synergies, and allow the Group to build on its insurance ambitions
    V2Y disposed of its e-commerce and e-logistics segments in 2020 with the aim of focusing on its Insurtech business
    Singapore’s general insurance market forecast to grow from S$4.4 billion in 2020 to S$5.6 billion in 2025, in terms of gross written premium, representing CAGR of 5%: GlobalData


    SINGAPORE – Media OutReach – 22 February 2022 – V2Y Corporation Ltd. (SGX: V2Y) announced today that it has issued a non-binding letter of offer to acquire all or a substantial percentage of a local renowned insurance company’s general insurance business. The purchase consideration, which will be determined and agreed upon by both parties, is expected to be approximately S$20 million, subject to satisfactory due diligence, an independent valuation report and finalised terms in the definitive agreement. The move, which provides its current Insurtech business with cost and revenue synergies, will allow the Group to build on its insurance ambitions.

    The Group’s Insurtech business segment provides third-party administration and value-added services to help its brand partners in the computer, communication and consumer electronics sector manage and execute their extended warranty and accidental damage protection programmes. Leveraging on its technology platform and ecosystem, the Group aims to expand its Insurtech business by extending existing offerings and new products to its brand partners, channel partners and end-consumers.

    The general insurance market of Singapore is expected to grow from S$4.4 billion in 2020 to S$5.6 billion in 2025, in terms of gross written premium (GWP), representing a compound annual growth rate (CAGR) of 5%, according to a study by GlobalData[1].

    The resumption of economic activities, success of COVID-19 vaccination programs, and relaxation on travel restrictions are among the factors that will drive the growth of the general insurance sector in Singapore, the study said.

    V2Y Chief Executive Officer, Mr Ong Shen Chieh, said: “As economic activities recover and gather momentum in Singapore and the region, and international borders open further, demand for general insurance is expected to rise. We expect the industry’s growth trajectory to pick up in the coming years, thanks to the digitalisation wave, better product innovation, and an increase in infrastructure development projects. These trends will benefit our Insurtech business.”

    About V2Y Corporation Ltd

    V2Y was incorporated in Singapore on 28 June 2017 under the name of Synagie Corporation Pte. Ltd., and subsequently renamed Synagie Corporation Ltd. on 27 June 2018 in connection with its listing on SGX Catalist in 8 August 2018. On 12 November 2020, the Company’s name was changed to V2Y Corporation Ltd. Following the disposal of its e-commerce business segment in November 2020, the Group will now focus on its Insurtech business providing third-party administration services for its multinational customers in the computer, communications and consumer electronics sector.

    #V2Y

    The issuer is solely responsible for the content of this announcement.

    G8 Awarded LOI for the Installation of the Largest Next Generation 65MW Floating Solar system at BUI Hydro Dam in West Africa

    • The Bui Dam is a hydroelectric project in Ghana, built on the Black Volta River at the Bui Gorge
    • G8 entered LOI with BUI Power Authority Ghana to install a full turnkey 65MW system at BUI Hydro Dam facility


    SINGAPORE – Media OutReach – 22 February 2022 – G8 Subsea, Singapore-based technology company with global expertise in offshore and marine renewable energy projects today, announced that the Company has been awarded with an agreement by BUI Power Authority Ghana to install a full turnkey 65MW system at BUI Hydro Dam facility.


    The Group will install the GPM-65 floating solar system- featuring G8’s new generation flotation and high output Photovoltaic modules to increase power production capacity of Hydro Power Plants with an advanced power management system. This is to ensure efficient power and load transfer between solar and hydro-power.

    The GPM-65 Solar-Hydro System will occupy approximately 350,000m2 of water space at Black Volta River close to the Hydro dam vicinity. The Solar-Hydro system will be incorporated with G8’s marine engineered mooring and flotation technology to cater to different depth variations of the dam throughout the year. The system will feature an advanced power management system with an optional ESS (Energy Storage System) to integrate the function of solar power and hydropower generation.

    G8’s management, together with local joint venture partner KW Renewables, conducted a site assessment of the hydro dam facility to initiate logistics and project preparation with BUI operations team. The system is part of an extension to a present 5MW system and is targeted to be commissioned by third quarter 2023.

    G8’s unique expertise in marine construction and floating solar engineering will provide a high-quality solution to BUI with the latest technology to integrate Solar & Hydropower to increase renewable energy production in Africa.

    Emerging Enterprise- G8

    G8 was recently awarded the Emerging Enterprise Award 2021 in Singapore, is committed to capitalise on the robust demand for renewable energy technologies. Making few progresses recently. The company’s ambition for potential NASDAQ listing in 2022 had recently entered a US10million investment and technology collaboration deal with 3DOM of Japan valuing G8 at USD200mil. This enables the Group to set a leadership position in sustainable energy storage combined with wind and solar globally. Together with 3DOM as a technology partner, the Group will set its sights on playing a key role in the battle against climate change with complete green energy generation and storage solutions.

    Demand is growing faster than in any other region worldwide, supported by expanding populations, robust economic growth prospects, and significant potential due to the low market penetration of renewables 4 . Global consulting agency Deloitte predicts that the aggregate installed capacity of floating photovoltaics (FPVs) will reach 5.2GWp globally by the end of 2022, representing US$4–5 billion in spending.

    G8 has nearly 3 gigawatts (GW) of renewable energy and sub-sea transmission projects under development in Asia. Its footprint spans Indonesia, South Korea, India, and soon, Africa.

    #G8 #G8Subsea

    The issuer is solely responsible for the content of this announcement.

    Cheng & Cheng Taxation Reveals 10 quick facts about the Hong Kong Taxation System

    HONG KONG SAR – Media OutReach – 22 February 2022 – Hong Kong is famous for its simple taxation system and low tax rate, so would most probably be the first set-up to consider when investors enter the Asian market (particularly the Mainland China market). However, without a better understanding of the benefits, investors may not realise just how attractive Hong Kong is. Cheng & Cheng Taxation Services Limited (Cheng & Cheng Taxation) provides 10 quick facts about the taxation system investors need to know before deciding to move to Hong Kong.

     

    Benefits of setting up a Hong Kong intermediate holding company:

     

    1.      Hong Kong does not have withholding tax in most circumstances

     

    Most countries impose withholding tax when money is transferred out of the country. This tax could be even higher than the local corporate income tax rates. However, Hong Kong is the complete opposite. In general, there is no withholding tax on dividend and interest, or on services, while only a low withholding tax will be imposed on royalties. When a Hong Kong company has to pay royalties to an overseas entity, it has to withhold tax on behalf of the overseas entity. The general tax rate is between 2.475% and 4.95%, but under some circumstances the tax rate could be as high as 16.5%.

     

    The fact that Hong Kong does not charge withholding tax on dividend and interest makes it an ideal place for setting up an intermediate holding company.

     

    2.      Hong Kong does not tax on capital gains

     

    Capital gains tax planning is common in Hong Kong, because there are huge differences between tax rates on long-term capital gains and short-term trading gains. While short-term trading gains are subject to normal tax rates of 16.5%, long-term capital gains are subject to a tax rate of 0%.

     

    There is no clear definition that distinguishes between long-term and short-term investments. There are six “badges of trade” tests that are generally used to judge the difference, which leaves room for tax planning opportunities before the investment decision is made. Investments in securities and immovable properties for long-term investment purposes are also eligible for the non-taxable capital gain claim.

     

    From a group structure perspective, the non-taxable capital gain claim provides more flexibility in the exit of an underlying investment or subsidiary. This adds to the benefits of setting up an intermediate holding company in Hong Kong.

     

    3.      Hong Kong does not tax on dividend income

     

    Dividend income from both Hong Kong and foreign investments are non-taxable under Hong Kong Profits Tax. Hong Kong–sourced dividend income is exempted under Section 26 of the Inland Revenue Ordinance to avoid double taxation on the same profits, while foreign-sourced income is generally non-taxable in Hong Kong.

     

    Fund distribution income is generally exempt from Hong Kong Profits Tax under the same logic.

     

    4.      Hong Kong has already entered into DTAs with 45 tax jurisdictions

     

    Hong Kong has been rapidly expanding its Comprehensive Double Taxation Agreement (DTA) network in recent years to facilitate the use of Hong Kong entities to carry out cross-border business and investment. The number of DTAs has already reached 45. Please refer to the following website for a detailed list of DTA partners [https://henrykwongtax.com/home/hong-kong-tax-treaty-network/].

     

    The expanded DTA network will effectively reduce the overseas withholding tax when a Hong Kong company sets up an overseas subsidiary or does business with overseas business partners.

     

    It has become a global practice that a taxpayer has to apply for a Certificate of Resident Status in order to utilise the tax benefits under a DTA. As an international city, located in the central part of Asia and being so close to Mainland China, Hong Kong is in a good position to attract multinational corporations to build up economic substance (including personnel and an office) here. For more details on the requirements for obtaining Hong Kong tax resident status, please visit the “Tax Residency Certificate Video” section of the following website [https://henrykwongtax.com/home/trc-videos/].

     

    Benefits as a trading company:

     

    5.      Hong Kong does not have GST or VAT

     

    To facilitate the development of the trading industry in Hong Kong, Hong Kong does not impose goods and services tax (GST) or value-added tax (VAT). Only certain specific items, such as like liquor and tobacco, are subject to tax.

     

    More pertinently, while digital services tax (DST) has become a global trend, Hong Kong does not currently plan to introduce DST, a fact that will attract corporations working in the digital economy arena.

     

    As such, multinational corporations tend to set up a Hong Kong office as their Asian trading hub and sales office. They first sell the products to the Hong Kong group company, which will subsequently sell the products to customers in other Asian countries.

     

    6.      Hong Kong does not adopt the worldwide taxation system

     

    Unlike many developed countries, Hong Kong adopts a territorial taxation system. Regardless of whether a company is a Hong Kong resident or non-resident, only Hong Kong–sourced profits are subject to Hong Kong Profits Tax, in most circumstances. In other words, if a Hong Kong company carries out its operations outside Hong Kong, it will have the technical basis to pursue an offshore claim, even when the relevant profits are deposited with the bank accounts in Hong Kong.

     

    The Inland Revenue Department (the IRD) issues an enquiry letter to taxpayers that pursue an offshore non-taxable claim in Hong Kong to ensure their operations are carried out outside Hong Kong. As such, it is important for taxpayers to plan their inter-company arrangements and operational flow in advance, so as to defend against any challenge by the IRD. Sufficient trade transaction documents should be in place as the burden of proof is on the taxpayer.

     

    On the other hand, under the Common Reporting Standard (CRS) and Automatic Exchange of Information (AEOI), taxpayers that pursue an offshore claim in Hong Kong should be aware of their foreign tax risk. Double non-taxation is not encouraged under the OECD’s base erosion and profit shifting (BEPS) framework. Nevertheless, an offshore claim is one of the effective ways of avoiding double taxation issues, particularly with countries without a DTA with Hong Kong.

     

    7.      Hong Kong is well known for its low corporate income tax rate

     

    The corporate income tax rate in Hong Kong is 16.5%, which is among the lowest across the globe. For the first HK$2 million of profits, the tax rate is reduced by half, to 8.25%. The low tax rate has attracted a lot of Mainland China enterprises and multinational corporations to set up companies and operations in Hong Kong.

     

    Taxpayers in certain specified industries (such as insurance, shipping and corporate treasury centres) can enjoy a special tax rate of 8.25%, while taxpayers carrying out R&D activities in Hong Kong can enjoy an enhanced tax deduction of 200% or 300%.  Please visit the following website for more details on the tax benefits: https://henrykwongtax.com/newsletter/inland-revenue-ordinance-section-15f-double-taxation-risk-on-mnc-with-research-development-rd-functions-in-hong-kong/

     

    By setting up operations in Hong Kong to enjoy the low tax rate, the group / company could certainly benefit from a lower group effective tax rate to reduce the tax burden.

     

    Employer obligations:

     

    8.      Hong Kong employers have no obligation to withhold tax for employees

     

    Unlike many other tax jurisdictions, Hong Kong employers in general do not have an obligation to withhold tax on behalf of their employees when the remuneration is paid. The employees are under their own obligation to settle their Hong Kong Salaries Tax position.

     

    A withholding tax obligation only arises when an employee will permanently leave Hong Kong. In such a case, the employer has to notify the IRD at least one month before the expected date of departure. The employer is also required to temporarily withhold payment of salaries until receipt of the “letter of release” from the IRD.

     

    9.      Employers have to report salaries paid to employees, even when they work outside Hong Kong

     

    Every April, employers are required to file an Employer’s Return (BIR56A and IR56B) with the IRD to report the remuneration paid to its directors and staff, regardless of whether the work was carried out in or outside Hong Kong. It is a common misconception that filing the Employer’s Return is not required if the employees work outside Hong Kong.

     

    The mismatch between salary expenses incurred by a corporation and the Employer’s Return is one of the catalysts that will trigger a field audit and investigation by the IRD. As such, employers should also report remuneration paid to both Hong Kong and non-Hong Kong employees. Employees are under their own obligation to lodge a non-taxable offshore claim to the IRD if they work outside Hong Kong.

     

    Having said that, it is worthwhile for the employers to make a note in the IR56B that the employee did not perform his or her job duties in Hong Kong. Meanwhile, all employment contracts should be well structured to avoid any challenge by the IRD.

     

    Transfer pricing rule:

     

    10.  Hong Kong already has its own transfer pricing rule

     

    Large corporations in Hong Kong are now required to file transfer pricing documentation in Hong Kong, which comprises Master File, Local File and Country-by-Country (CbC) reporting. Since the implementation of the transfer pricing rule on 13 July 2018, we are also seeing an increased trend by the IRD to carry out transfer pricing audits on taxpayers.

     

    Hong Kong follows the international threshold for CbC reporting. Multinational groups with consolidated revenue of EUR750 million (HK$6.8 billion) are required to file a CbC notification and report in Hong Kong. An important point to highlight is that, even though a multinational group has already submitted a CbC report in another tax jurisdiction, they must submit their CbC notification in Hong Kong, even when there is an information exchange mechanism.

     

    Below is the specific threshold for transfer pricing Master File and Local File in Hong Kong:

     

    A

    Criteria (A): Based on size of business (any two out of three of the below)

    Threshold

    (i)

    Total annual revenue

    ≥ HK$400 million

    (ii)

    Total assets

    ≥ HK$300 million

    (iii)

    Employees

    ≥ 100

     

    B

    Criteria (B): Based on related party transactions (any one out of four of the below)

    Threshold (HK$)

    (i)

    Transfers of properties (excludes financial assets / intangibles)

    ≥ $220 million

    (ii)

    Transactions in financial assets

    ≥ $110 million

    (iii)

    Transfers of intangibles

    ≥ $110 million

    (iv)

    Any other transactions (e.g. service income / royalty income)

    ≥ $44 million

     

    Taxpayers above the threshold are required to prepare a Master File and Local File on an annual basis.

     

    For more details of Hong Kong and Mainland China tax news, please visit Cheng & Cheng Taxation’s  website at https://henrykwongtax.com.

    About Cheng & Cheng Limited

    Cheng & Cheng Limited, one of the member firms of Cheng & Cheng Group, is an accounting firm established in Hong Kong with over 250 staff located in Hong Kong and Mainland China. We are the principal auditor for 10 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 Hong Kong’s taxation system, or seek specific tax advice from our tax experts, please do not hesitate to contact us by email (henry.kwong@chengtax.com.hk) or phone (3962 0114).

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