Obligatory publication of bank accounts for VAT purposes
Please note that all VAT payers (which were registered before 1 January 2013) are obliged to announce to Financial Authorities details of all their bank accounts used for economic activities until 28 February 2013.
The VAT payers may identify bank accounts, which shall be published through the Register of VAT payers. The Financial Authorities will commence publishing this information starting from 1 April 2013. As of this day the institute of guarantying the unpaid VAT by the supplier will become effective. The institute will be applicable in case the customer uses for payment for the supplied goods or services other bank account than those published by the Financial Authorities. If the VAT payer does not announce any bank account for publishing until 28 February 2013, the Financial Authorities will publish all bank accounts, which they record based on the available registration data.
Furthermore we would like to point out that the General Financial Directorate published information regarding the institute of unreliable VAT payer. This information lists the types of breaching the duties at VAT administration, which will cause the payer to become an “unreliable” VAT payer.
New Conventions for the Avoidance of Double Taxation
As of 1 January 2013, new Conventions for the Avoidance of Double Taxation entered into force. Furthermore, new Protocols amending some of the Conventions entered into force as well.
In particular, due to the changes in the withholding tax rates stipulated by these Conventions and Protocols, we would recommend revising tax implications of these documents in case of transactions with relevant countries.
Please find below an overview of the relevant conventions and protocols:
- Hong Kong
Please find enclosed rates valid for passive income and a list of articles included in the new Protocols.