• 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.

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).

#Cheng&ChengTaxationServices

New Dyson V12 Detect Slim™ reveals, removes and counts microscopic dust for more hygienic homes

HONG KONG SAR – Media OutReach – 19 October 2021 – In Hong Kong, the changing of the seasons may worsen allergic rhinitis and related conditions like asthma, conjunctivitis and eczema. However, for all individuals with allergies it is a year-round problem caused primarily by dust mites and other hidden allergens found in our homes.

Meanwhile, Hong Kong’s Consumption Voucher Scheme is now in its second round with all registered consumers receiving their second HK$2,000 voucher either on October 1 or November 1. To receive the final disbursement of HK$1,000, consumers must spend both their vouchers (HK$4,000) within a specified time^[1]. For Hong Kong consumers who want to improve the quality of their home environment, an investment in a new Dyson vacuum cleaner home could be a good option.

Creating a more hygienic home is now made easier, with the brand-new Dyson V12 Detect Slim™ vacuum cleaner. Engineered to reveal hidden dust particles as small as 10 microns, equipped with an acoustic piezo sensor to enable scientific proof of what’s been sucked up and adjust suction power based on the volume of dust and size of particles, these new Dyson technologies redefine deep cleaning at home, all shown on an LCD screen.

Laser Dust Detection

Dyson has engineered laser dust technology to ensure you are reassured that your home has been deep cleaned. Laser Dust Detection reveals dust and debris you cannot normally see with a precisely angled laser integrated into the cleaner head.

The idea came about when a Dyson Engineer noticed that airborne particles in their home glistened in the sun. They began to research how they could take this notion and apply it to the fine dust we cannot see in our homes. The team experimented with laser lights in the lab to test how this could be achieved. For human eyes, green light is 8.5 times brighter than red or blue light, and it can provide 500 lux of ambient light. That is where a new solution was born.

PIEZO SENSOR

Understanding that now more than ever people want more hygienic homes, Dyson engineers set about developing a technology which enables the user to measure the dust it detects and then displays it on an LCD screen for real time scientific proof of a deep clean.

So, how does this work? An acoustic piezo sensor has been integrated into the vacuum. The cleaner head picks up microscopic particles, which are sized and counted up to 15,000 times a second. The dust enters the vacuum and hits the acoustic piezo sensor within the bin inlet with the tiny vibrations being converted to electrical signals. The dust size and quantity are shown on the in-built LCD screen, so the user can see how much dust the vacuum has removed, as well as the different sizes of particles and deliver scientific proof of a deep clean.

The vacuums have been designed so that they automatically increase suction power when they come across a large amount of dust. When dust levels normalise, suction power is reduced to its previous level.

ANTI-TANGLE TECHNOLOGY 

Introducing a new anti-tangle Hair Screw tool: 9.4% of Hong Kong households keep dogs or cats as pets^[2] and handling pet hair has become a problem for most pet owners. Dyson Engineers also looked to solve the problem of removing hair on the brush bar. This is often a challenge for many vacuums, despite claims to the contrary, so we have developed a new anti-tangle conical brush bar which spirals hair up and into the bin. This prevents the wrapping of hair around the brush bar. Designed for human and pet hair, our engineers delicately tweaked the precise angle of the bristles on the tool, to ensure the release force did not tangle the hair and tested the tool on multiple hair types. 

FILTRATION

The Dyson V12 Detect Slim™ features Dyson’s 5-stage advanced filtration technologies, capturing 99.99% of particles and allergens as small as 0.3 microns, to expel cleaner air. Our Dyson Root Cyclone™ technology is efficient at separating dust and dirt from floors and surfaces without reduction in suction power.

The Dyson V12 Detect Slim™ is now available at Dyson.hk, the Dyson Demo Store at ELEMENTS and major electronics retailers, priced from HK$5,180 to HK$5,980. Buy directly from Dyson.hk for exclusive models and accessories, free next-day delivery, and auto-warranty registration.

For more information, please visit Dyson official website, https://www.dyson.hk/ or call (+852) 3065 9666/ (+852) 3008 8252.

About Dyson

Dyson is a global research and technology company with engineering, research, development, manufacturing and testing operations in Singapore, the UK, Malaysia and the Philippines. Having started in a coach house in the UK, Dyson has consistently grown since it was established in 1993. Today, it has two technology campuses in the UK spanning over 800 acres in Malmesbury and Hullavington and a global headquarters in Singapore. Dyson remains family-owned and employs over 14,000 people globally including 6,000 engineers and scientists. It sells products in 83 markets internationally.

Dyson is investing £2.75bn in the business to conceive revolutionary products and technologies. Dyson has global teams of engineers, scientists and software developers focused on the development of solid-state battery cells, high-speed electric digital motors, sensing and vision systems, robotics, machine learning technologies and A.I. investment. Since inventing the first cyclonic bagless vacuum cleaner – DC01- in 1993, Dyson has created problem solving technologies for haircare, air purification, robotics, lighting and hand drying.

The Dyson Institute of Engineering and Technology is a new model for engineering education combining the academic rigour of a traditional university with hands-on and real-world experience of working on real products and technologies inside a global technology company. Dyson undergraduates are paid a salary from day one and pay no tuition fees.

The James Dyson Foundation was founded in 2002 and the charity works internationally to empower aspiring engineers, support engineering in education and invest in medical research. The James Dyson Award is the Foundation’s annual international design competition and is open to current and recent design and engineering students. Since starting in 2005, the Award has supported nearly 250 inventions, providing funds to support their commercialisation.

#Dyson