Tuesday, 18 July 2017

China Updates- IP/ Foreign Investment

IP
Tencent recovered 139 domain names by action through the Hong Kong chapter of the Asian Domain Name Dispute Resolution Centre. The holder of the names was found, in short, to be cyber-squatting, failing on the three key issues of: whether the disputed domain names were the same as or similar to Tencent's trademarks; whether the holder had any right or legitimate interest in the disputed domain names; and whether the holder had maliciously registered and used the disputed domain names.

In addition to the 139 names recovered by Ten Cent, the holder had registered a further 2,100 domain names, many of them containing registered trademarks.

Foreign Investment
China's State Council released the 2017 version of its "negative list" to further facilitate foreign investment in the pilot free trade zones on 16th June, 2017. This is applicable to the 11 FTZs and the list will replace the corresponding 2015 list.

Then, on 28 June 2017, the National Development and Reform Commission (NDRC) and the Ministry of Commerce (MOFCOM) together issued the Foreign Investment Industrial Catalogue for 2017. As for the negative list, this will replace the corresponding 2015 list.


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Thursday, 6 July 2017

Hong Kong Updates- Register of Significant Controllers/ Insurance/ Tax – Information Exchange/ Apology Bill/ MPF


Register of Significant Controllers
The Companies (Amendment) Bill 2017 ("Bill") was gazetted on 23 June 2017. Amongst other provisions, the bill will require companies incorporated in Hong Kong (but not overseas companies registered in Hong Kong) to keep and maintain a new "register of significant controllers".

Primasia Corporate Services Limited will brief its clients on this directly and in more detail to ensure their compliance with the new law. If you need more information on this, please contact us whether you are an existing client or not.

Insurance

Hong Kong's new Insurance Authority ("IA") commenced operations on 26th June 2017, replacing the Office of the Commissioner of Insurance. The main functions of the IA are to regulate and supervise the insurance industry in Hong Kong, to promote the general stability of the insurance market, and to protect policy holders.

Tax – Information Exchange

The Automatic Exchange Of Information (AEOI) Portal was launched on 3rd July 2017 for financial institutions (FIs) to file notifications and returns in relation to the reporting of financial account information for AEOI purposes.


In other words, AEOI is now being implemented in Hong Kong. FIs should by now have put in place effective information systems and procedures for complying with the relevant due diligence and reporting obligations under the AEOI regime.

Apology Bill

The Apology Bill, which reduces the extent to which a contemporaneous apology can be relied upon as an admission of liability, has been passed.

MPF

The first imprisonment for conviction (but by no means the first conviction) under the Mandatory Provident Fund Schemes Ordinance (the "MPFSO") has been handed down.

Under the MPFSO, any employer who, without reasonable excuse, fails to pay of mandatory contributions on time commits an offence and is subject to a maximum penalty of a HK$450,000 fine and four years' imprisonment.




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Suite 1106-08, 11/F., Tai Yau Building, No. 181 Johnston Road, Wanchai, Hong Kong

Thursday, 22 June 2017

China Updates- IP/ BEPS/ Cyber-security

IP
A Beijing District People's Court has held that the Alibaba had not taken adequate steps to prevent the publication of material infringing IP rights, having had 8 months in which to act upon notice of alleged infringement.

BEPS
China signed the OECD Convention on BEPS (Base Erosion and Profit Shifting) on 7 June 2017, which modifies many bilateral tax treaties to implement the BEPS recommendations.

Cyber-security
China's new cybersecurity law, which has had much media coverage, became effective on 1st June 2017. As a result, businesses in China will be subject to significantly increased internet regulation. Apple, for example, has already removed many listings from its AppStore in China as a result.


In addition, significant privacy protections have been introduced for network users in China. One aspect which has attracted particular attention is the requirement that that information gathered and produced in mainland China must be stored in mainland China. If it is claimed that it is necessary that information be stored outside China then a security assessment must be carried out.



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Primasia will post the updates of Hong Kong and China from time to time. Follow us on our WebsiteBloggerLinkedIn and stay tunned for our updates!

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Primasia Corporate Services Limited
Tel: +852 2882 2088
Suite 1106-08, 11/F., Tai Yau Building, No. 181 Johnston Road, Wanchai, Hong Kong

Friday, 16 June 2017

Hong Kong Updates- Proposed New Stock Exchange/ Tax/ BEPS/ Arbitration/ Employment

Proposed New Stock Exchange
A public consultation on a potential new board has been announced by the Stock Exchange of Hong Kong. This board would (likely) cover:
(a) "pre-profit" companies;
(b) companies with non-standard governance procedures; and
(c) Mainland Chinese companies wishing to secondarily list in Hong Kong.

Tax
In a recent IRD Board of Review case, it was held that trading profits derived by a Hong Kong company under an import processing arrangement with its wholly owned subsidiary were of “Hong Kong source” and therefore taxable in Hong Kong. The Board further decided that, in the absence of a primary transfer pricing adjustment made by a tax treaty partner, no unilateral adjustment could be made (to reduce the taxpayer's Kong sourced profits).

BEPS
Hong Kong, represented by China, signed the multilateral (67 country) OECD BEPS convention (to prevent Base Erosion and Profit Shifting).

Arbitration
The automatic opt-in applicable to domestic arbitration under the Arbitration Ordinance expired on 1st June, 2017.

Employment
Hong Kong's Chief outgoing Executive announced a framework towards regulating standard working hours. The proposals include:

  • requiring that employers put in place a written employment contract, which must include the employee's working hours and overtime remuneration arrangements, for employees with a monthly wage of HK$11,000 or below, and
  • mandating the overtime remuneration for such employees.

However, with a new Chief Executive, this and other proposals (such as ending the clawback of employers' contributions from employees' MPF funds) are put on the back burner.



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Primasia Corporate Services Limited
Tel: +852 2882 2088
Suite 1106-08, 11/F., Tai Yau Building, No. 181 Johnston Road, Wanchai, Hong Kong

Thursday, 15 June 2017

Cloud-based accounting solution for China entities

We provide Cloud-based accounting solution for China entities. You can access to view the company's financial information anywhere at anytime with the cloud accounting software. Work Smarter and Faster with Primasia!







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John Barclay -Email
Teresa Tam - Email 
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Primasia Corporate Services Limited
Tel: +852 2882 2088


Suite 1106-08, 11/F., Tai Yau Building, No. 181 Johnston Road, Wanchai, Hong Kong

Friday, 26 May 2017

China Updates- Civil Law Reform/ Personal Data Protection

Civil Law Reform
The National People's Congress has formally adopted the China General Civil Law Rules (“GCLR”), which will enter into force on 1st October, 2017. The GCLR cover the basic elements of the civil law system, as follows:
  • the basic principles of civil law
  • subjects
  • rights
  • legal acts
  • liability; and
  • statute of limitations.

Personal Data Protection
The Supreme People's Court has clarified some of the rules regarding personal data protection, and criminal liability for breaches of the rules.

Personal information is defined to cover:
  1. any information that can be used alone or in combination with other information, to identify a natural person; and
  2. any information reflecting the special characteristics of the activities of a natural person.


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Primasia will post the updates of Hong Kong and China from time to time. Follow us on our WebsiteBloggerLinkedIn and stay tunned for our updates!

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Need more information?
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Teresa Tam - Email 
--------------------------
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--------------------------
Primasia Corporate Services Limited
Tel: +852 2882 2088




Suite 1106-08, 11/F., Tai Yau Building, No. 181 Johnston Road, Wanchai, Hong Kong

Friday, 12 May 2017

Hong Kong Updates- Employment Disputes/ Same-sex Marriage/ Minimum Wage

Employment Disputes - Reinstatement of Employees
The Employment (Amendment) Bill 2017 , which was gazetted on 5th May, 2017, includes provision for reinstatement of employees who have been unfairly dismissed. The previous draft has been changed, however, to increase the penalty on an employer for refusal to reinstate to HK$72,500.

Although the number of cases where employees seek reinstatement has been low in the past, the increase in the penalty may provide more incentive for employees to do so.

Same-sex Marriage

Hong Kong’s Court of First Instance has recognised same-sex marriage in a narrowly defined case (but the Department of Justice is appealing the ruling). In essence, the case applies to cases where the term “spouse” is used in legislation without being defined so as to exclude same-sex marriage (unlike Hong Kong’s Marriage Ordinance, which defines marriage as being between non-same-sex partners, or the Inland Revenue Ordinance, which refers to “husband and wife”).

However, the Equal Opportunity Commission’s Code of Practice against Discrimination in Employment on the Ground of Sexual Orientation proposes good practices in the workplace, including not discriminating on the basis of sexual orientation.

Minimum Wage
As previously reported, the Statutory Minimum Wage rate has increased from HK$32.5 per hour to HK$34.5 per hour with effect from 1st May 2017.




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Primasia will post the updates of Hong Kong and China from time to time. Follow us on our WebsiteBloggerLinkedIn and stay tunned for our updates!

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Need more information?
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--------------------------
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--------------------------
Primasia Corporate Services Limited
Tel: +852 2882 2088




Suite 1106-08, 11/F., Tai Yau Building, No. 181 Johnston Road, Wanchai, Hong Kong