Hong Kong Credit Unions got Tax Exemption from Profits
- Date : Saturday December 08, 2018
- Venue :
(News from Mr. Andrew So, ACCU Founding President)
In March 2009, The Hong Kong Inland Revenue Department served notices on credit unions that they be assessed for profits tax for the year of assessment 2002/2003 onwards. Credit unions in Hong Kong believe that the Assessment is unfounded and had filed notices of objection against the Assessment. One of the reasons for objection given was that the Board of Review on taxation in Hong Kong had made a decision in 1979 that credit union is not a business and is not liable to profits tax.
At the annual seminar organized by the Credit Union League of Hong Kong on December 8, 2018 in a hotel in Kowloon, the welcoming order made by the Chief Executive in Council of Hong Kong under the Inland Revenue Ordinance to exempt credit unions from profits tax (except those profits arising from disposal of any land or buildings) from the year of assessment 2002/03 to 2016/17and 2017/18 onwards, as communicated to the credit unions by the Financial Services and the Treasury Bureau in August 2018, was related to the attending credit union presidents and representatives.
When mentioning such a welcoming news, Mr. Y.C. Lee, CEO of the Credit Union League of Hong Kong (1st in row 3 in beige jacket in group photo) jokingly said that the good news came as a result of Andrew So giving a piece of his mind to the high ranking officials of the Authorities concerned at a meeting of credit union delegates with them on the subject matter.
Credit unions in Hong Kong were given legislative recognition of their existence and importance in 1968 when the Credit Unions Ordinance was enacted.
The Hong Kong Inland Revenue Ordinance was amended in 1981 to exempt credit unions from tax on interest paid or payable in respect of a loan made by a credit union.