Inland Revenue Department: 2023-24 Electronic Filing of Profits Tax Returns  

The IRD issued 2023/24 Profits Tax returns to corporations and partnership businesses on 2 April 2024. This is the second year in which the IRD has implemented the voluntary e-filing initiative. Taxpayers are encouraged to participate in the voluntary e-filing of their profits tax returns and the required forms together with the supporting documents (including financial statements and tax computations) in iXBRL format.

To facilitate taxpayers in preparing the required iXBRL data files, the IRD is providing the IRD Taxonomy Package (the Taxonomy) and the IRD iXBRL Data Preparation Tools (the Tools), which can be downloaded from the IRD website, free of charge.

The Taxonomy and the Tools have been updated and enhanced in 2024. The major enhanced features include:

• Adding a roll-over function
• Increasing the gross income threshold for the use of Template Tool from HK$2 million to HK$5 million

Meanwhile, the first Traditional Chinese edition of the Taxonomy and the Traditional Chinese Tools, which enable taxpayers to convert their Traditional Chinese supporting documents into iXBRL data files, will also be launched.

More details on e-filing of profits tax returns and iXBRL filing can be found on the IRD webpages at www.ird.gov.hk/e_epf and www.ird.gov.hk/eng/tax/bus_ixbrl, respectively.

For enquiries in relation to the iXBRL filing requirements and the use of the Tools, you may contact the IRD at ixbrl_reporting@ird.gov.hk, or access e-Appointment to book a specific timeslot to make enquiries via phone.

Benefits of e-filing

• Minimizing errors in tax filing
• Reducing the turnaround time for signature or authorization arrangement
• Enhancing the efficiency, reliability and accuracy
• Providing round-the-clock service

HKMA introduces nine measures to support SMEs

The Hong Kong Monetary Authority (HKMA), together with the Banking Sector SME Lending Coordination Mechanism (Mechanism), announced on 28 March 2024 a series of measures to assist SMEs in obtaining financing from banks and to support their continuous development.

SMEs are the bedrock of the Hong Kong economy and an important customer segment for banks. In 2023, the 11 participating banks in the Mechanism together approved over 110,000 loans to SMEs, involving an aggregate facility limit of over HK$450 billion.

Although the local economy has been recovering gradually, some SMEs are still facing challenges in their operations. Taking into account the views of the commercial sectors, the Mechanism decided to launch the following nine measures to assist SMEs in navigating a complex and ever-changing operating environment and to increase their bargaining power relative to banks:

Supporting the financing needs of SMEs

(1) Never demand early repayments from mortgage customers who repay on schedule: The participating banks in the Mechanism commit to follow the guidance issued by the HKMA on 20 December 2023 not to demand early repayments from mortgage borrowers who make payments on schedule.

(2) Give customers a transition period of at least six months for credit limit adjustments: When performing periodic review of credit limits, banks will take into account a range of factors such as the borrower’s credit demand, overall financial position and repayment ability. Banks will not adjust a credit limit merely due to a change in the collateral value. If the credit limit needs to be lowered due to changes in the customer’s credit demand or its risk profile, banks will give at least six months for the customer to transition to the new credit limit, provided that the customer has been making payments on schedule and has not breached any loan covenant.

(3) Expedite the handling of applications for the 80% and 90% Guarantee Products: The Financial Secretary announced in the 2024-25 Budget that the application period for the 80% and 90% Guarantee Products under the SME Financing Guarantee Scheme would be extended for two years to the end of March 2026. Banks will co-operate with HKMC Insurance Limited to actively review the handling process, with a view to expediting loan approvals.

(4) Apply the principles under the Pre-approved Principal Payment Holiday Scheme to support customers facing difficulties: For SMEs facing challenges in their operations, banks will be sympathetic in providing suitable credit relief, subject to prudent risk-management principles. This includes referencing the arrangements under the Pre-approved Principal Payment Holiday Scheme in offering loan restructuring to ease customers’ cash-flow pressure. For corporates which have transitioned to partial principal repayment under the Scheme, banks will, upon a customer’s request, consider extending the duration of the partial principal repayment, allow the customer to choose a lower proportion of partial principal repayment or even offer principal moratorium. The above-mentioned arrangements are also applicable to taxi loans, public light bus loans and commercial vehicle loans taken out by personal customers.

(5) Offer credit products that better serve SMEs’ needs and other support services: Leveraging financial technology including the Commercial Data Interchange (CDI) launched by the HKMA, banks will actively explore the launch of bespoke credit products for SMEs such as unsecured loans with fast approval. Apart from credit products, banks will offer other services to support the business development of SMEs. Examples include cross-border banking services, digital business services, and services related to e-commerce and ESG to assist SMEs in their business expansion, upgrade and transformation.

(6) Actively consider lowering interest charges and fees: Banks will improve the transparency of fees for SME banking services. For SME customers in need, banks will also consider offering fee waivers, interest or other concessions to ease their financial burden.

Enhancing the bargaining power of SMEs

(7) Set up a one-stop platform for providing information on banking services for SMEs: To facilitate SMEs to compare and select banking services of different banks, the HKMA will create a dedicated web page to provide information on banks’ SME lending services, including their service hotlines and credit products offered. The HKMA will also create a dedicated email account (smelending@hkma.gov.hk) and an enquiry hotline (2878 1199) to collect and convey feedback received from SMEs on banking services.

(8) Provide convenience to customers to switch lending banks: Banks will undertake to provide assistance to SME customers who wish to switch to another lending bank. Through the HKMA’s Interbank Account Data Sharing (IADS) initiative, the original lending bank will provide a customer’s bank account data to the new lending bank with the customer’s consent. In addition, the original lending bank will commit to provide the customer’s existing credit information to the customer within seven working days, so that the customer can pass on such information to the new lending bank to expedite their account opening and loan applications. For credit facilities that are secured by property, the original lending bank will endeavour to release the charge over the collateral within six weeks after receipt of the relevant legal instructions, except in exceptional circumstances.

Strengthening communication

(9) Regular meetings with business sectors to understand the needs of SMEs: The Hong Kong Association of Banks (HKAB) and Chinese Banking Association of Hong Kong (HKCBA) will take lead in arranging regular meetings between the banks and the business sectors to understand the needs of SMEs. This will enable banks to continuously enhance their banking services and strengthen their support for SMEs. The HKAB and HKCBA will regularly communicate with the HKMA on the progress of their outreach.

The HKMA will follow up on the above measures via the Mechanism, and maintain close communication and join hands with the banking and commercial sectors in supporting the continuous development of SMEs.

Background

The Mechanism was established by the HKMA in October 2019. Participants include 11 banks that are most active in SME lending. The HKAB and the HKMC Insurance Limited are also represented in the Mechanism. During the pandemic, the Mechanism rolled out several rounds of relief measures for corporates, including the Pre-approved Principal Payment Holiday Scheme. An orderly exit from the Scheme commenced at the end of July 2023, with the focus of the Scheme moving from tiding corporates over the pandemic to assisting their return to normal repayment. Participating corporates may choose to repay 20 per cent of the original principal repayment amount with a duration of 18 months, or 50 per cent of the original principal repayment amount with a duration of 30 months. For corporates which are not financially able to transition to partial principal repayment, banks will continue to offer principal moratorium on a case-by-case basis.

For relevant press release, please visit https://www.info.gov.hk/gia/general/202403/28/P2024032800316.htm?fontSize=1.

Clansmen Culture Promotion Scheme starts application from 1 April 2024

The Home Affairs Department (HAD) announced on 28 March 2024 that the Clansmen Culture Promotion Scheme will be open for application from 1 April 2024 to provide funding subsidy for clansmen associations to organise activities promoting hometown culture.

The Chief Executive announced in his 2023 Policy Address the launch of the Clansmen Culture Promotion Scheme for a period of three years, with a total funding of $30 million earmarked for application by clansmen associations to organise activities promoting hometown culture. The scheme aims to deepen the public’s understanding of and sense of belonging to their hometowns, thereby fostering the spirit of loving the motherland, Hong Kong and their hometowns. The HAD will earmark a dedicated funding of $10 million for each of the next three financial years for application by clansmen associations.

Any locally registered clansmen associations with good reputation and track record; which have all along been committed to promoting hometown culture and fostering exchanges between Hong Kong and hometowns in order to promote the spirit of loving the motherland, Hong Kong and hometowns; and with experience in organising relevant activities, are eligible to apply for subsidy under the scheme to organise relevant activities to promote and preserve hometown culture, unite clansmen in Hong Kong and facilitate exchanges between the two places. There is no restriction on the form of the activities. As long as the activities are non-profit-making in nature and in line with the objectives of the scheme, applicant associations can make applications under the scheme. Generally speaking, the funding ceiling for each activity is $200,000; applications exceeding the funding ceiling will be considered on a discretionary basis, taking into account the scale, creativity and content of the activities.

The HAD will accept funding applications for 2024-25 from clansmen associations starting from 1 April 2024, and hold briefings on 2 and 5 April 2024 to introduce the details of the scheme to eligible applicant associations. Application for 2024-25 will be open until 30 April 2024. For enquiries, please contact the HAD by email (clansmen@had.gov.hk)

For relevant press release, please visit https://www.info.gov.hk/gia/general/202403/28/P2024032800282.htm?fontSize=1.

Inland Revenue (Amendment) (Tax Concessions for Intellectual Property Income) Bill 2024 gazetted

The Government published the Inland Revenue (Amendment) (Tax Concessions for Intellectual Property Income) Bill 2024 in the Gazette on 28 March 2024 to implement the “patent box” tax incentive, thereby encouraging enterprises to forge ahead with more research and development (R&D) activities and promote intellectual property (IP) trading, strengthening Hong Kong's competitiveness as a regional IP trading centre.

A spokesman for the Commerce and Economic Development Bureau said, “The relevant amendments aim to put into effect a major policy measure under the Chief Executive’s 2023 Policy Address to promote the development of IP trading, which provides tax concessions for profits sourced in Hong Kong and derived from eligible IP created through R&D activities.”

The 2023 Policy Address has announced that the concessionary tax rate for the “patent box” tax incentive will be set at 5 per cent, which is substantially lower than the prevailing normal profits tax rate in Hong Kong (i.e. 16.5 per cent). This aims to encourage the innovation and technology (I&T) sector to actively engage in more R&D activities and conduct commercialisation transactions making use of patents and other IP protections, and create more IPs with market potential as a catalyst for promoting I&T and IP trading activities.

In addition, to encourage and promote more filings under the local patent system (in particular the original grant patent (OGP) system) for obtaining legal protection locally, if the relevant eligible IP is a patent filed or granted outside Hong Kong, the Government proposes to additionally require that there must already be an application for or a grant of an OGP or a short-term patent (STP) in Hong Kong for the underlying invention in order to qualify for the “patent box” tax incentive. A post-grant substantive examination request must also be filed for an STP. The relevant requirement will apply to those applications for registration of an eligible IP which are filed after the period of 24 months following the commencement date of the Bill.

“The increase in IP trading activities will be conducive to creating more business and employment opportunities for relevant professional services such as legal, valuation, management, consultation and agency services, thereby further developing and strengthening the IP ecosystem. All these will help foster Hong Kong’s development into an international I&T centre and a regional IP trading centre as set out in the 14th Five-Year Plan,” the spokesman added.

The Bill will be introduced into the Legislative Council for first and second readings on 10 April 2024.

For relevant press release, please visit https://www.info.gov.hk/gia/general/202403/28/P2024032800217.htm.

United Nations Sanctions (Libya) Regulation 2019 (Amendment) Regulation 2024 gazetted

The Government gazetted the United Nations Sanctions (Libya) Regulation 2019 (Amendment) Regulation 2024 (the Amendment Regulation) on 28 March 2024, which came into operation on the same day.

“The Amendment Regulation amends the United Nations Sanctions (Libya) Regulation 2019 to give effect to certain decisions relating to sanctions in the United Nations Security Council Resolutions 2664 and 2701 in respect of Libya,” a Government spokesman said.

The amendments renew the sanctions measures in respect of preventing illicit petroleum exports from Libya, and reflect the latest exemption arrangements in respect of arms embargo and asset freeze.

For relevant press release, please visit https://www.info.gov.hk/gia/general/202403/28/P2024032800173.htm?fontSize=1.

United Nations Sanctions (Yemen) Regulation 2019 (Amendment) Regulation 2024 gazetted

The Government gazetted the United Nations Sanctions (Yemen) Regulation 2019 (Amendment) Regulation 2024 (the Amendment Regulation) on 28 March 2024, which came into operation on the same day.

"The Amendment Regulation amends the United Nations Sanctions (Yemen) Regulation 2019 to give effect to certain decisions relating to sanctions in the United Nations Security Council Resolution 2707 in respect of Yemen," a Government spokesperson said.

The amendments renew the financial sanctions and travel ban.

For relevant press release, please visit https://www.info.gov.hk/gia/general/202403/28/P2024032800170.htm.

Guangdong-Hong Kong-Macao Greater Bay Area Mediator Accreditation Rules (Hong Kong Special Administrative Region) officially promulgated

The Working Group on the Greater Bay Area Mediation Platform, comprising representatives from legal departments of Guangdong Province, the HKSAR and the Macao Special Administrative Region, was established in August 2021 to assist and support the operation of the Greater Bay Area (GBA) Mediation Platform. The Guangdong-Hong Kong-Macao Greater Bay Area Mediator Accreditation Standards were promulgated by the GBA Mediation Platform, for reference of the legal departments of the three places when laying down the local accreditation rules. The third meeting of the Working Group was held on 24 November 2023. The discussion focused on their respective local accreditation rules for accreditation of GBA mediators formulated by each of the three places as well as the requirements for the GBA mediator training courses.

At the Fifth Guangdong-Hong Kong-Macao Greater Bay Area Legal Departments Joint Conference on 7 December 2023, the three parties had in-depth discussions on topics including their respective local accreditation rules for accreditation of GBA mediators and taking forward the establishment of a GBA mediator panel, based on the Guangdong-Hong Kong-Macao Greater Bay Area Mediator Accreditation Standards. The three parties reached an agreement to promulgate and implement their respective local accreditation rules for accreditation of GBA mediators in the first quarter of 2024.

The Working Group on the Greater Bay Area Mediation Platform promulgated the local accreditation rules for accreditation of GBA mediators of the three places on 28 March 2024. The Department of Justice of Hong Kong formulated the Guangdong-Hong Kong-Macao Greater Bay Area Mediator Accreditation Rules (Hong Kong Special Administrative Region) applicable to the accreditation through Hong Kong, based on the requirements of the Guangdong-Hong Kong-Macao Greater Bay Area Mediator Accreditation Standards.

The Guangdong-Hong Kong-Macao Greater Bay Area Mediator Accreditation Rules (Hong Kong Special Administrative Region) are available on the Department of Justice website.

For relevant press release, please visit https://www.info.gov.hk/gia/general/202403/28/P2024032800182.htm?fontSize=1.

Dentists Registration (Amendment) Bill 2024 to be introduced into LegCo

The Dentists Registration (Amendment) Bill 2024 (the Bill) was gazetted on 28 March 2024, with the First Reading at the Legislative Council scheduled for 10 April 2024, to amend the legislative framework that has been in place since 1959.

The Bill proposes to create new pathways for admitting qualified non-locally trained dentists to practise in Hong Kong, introduce an internship for local dental graduates and a period of assessment for non-locally trained dentists to enrich their clinical experience, as well as update the regulatory regime for dental hygienists and dental therapists to tie in with the Government's policy direction of promoting oral health and dental care. The introduction of the Bill aims to increase dental manpower in Hong Kong to support public and subsidised dental services and enhance the overall standards of dental professionals to better protect users of dental services.

Admission of non-locally trained dentists

Hong Kong is now facing an acute shortage of dentists, with only 0.37 dentist per 1 000 population. This ratio is considerably lower than that in Mainland China and other advanced economies. Such a manpower shortage persists despite the fact that the Government had increased the number of local training places for dentists on four occasions (from 50 per year in the 2008-09 academic year to 90 per year in the 2022-23 academic year). In recent years, the manpower shortage has been particularly severe in the public sector which offers, amongst others, school dental care and other public dental services. As at 1 January 2024, the vacancy rate of the Dental Officer grade of the Department of Health (DH) has reached 27 per cent (100 vacancies out of 370 posts).

With reference to the experience of admitting non-locally trained medical practitioners, the Bill will introduce new pathways for admitting qualified non-locally trained dentists, including the limited registration (LR) to be open to all dentists and the special registration (SR) to be provided for specialist dentists. For any non-locally trained dentist who is selected for full-time employment in a specified institution, including the DH, the Hospital Authority, the University of Hong Kong and the Prince Philip Dental Hospital, he or she may submit an LR or SR application to the Dental Council of Hong Kong (DCHK), and, upon approval, directly practise in the aforementioned specified institution.

If a non-locally trained dentist has served in a specified institution(s) for at least five years in aggregate and is certified by the employing specified institution(s) to have served satisfactorily, an LR dentist will be exempted from taking part of the licensing examination while an SR dentist may be exempted from taking part or all of the licensing examination subject to the DCHK's consideration in accordance with the nature of work undertaken by the dentist. The non-locally trained dentist will be eligible for full registration to practise in any institution in Hong Kong after passing the required part of the licensing examination.

The Bill will also introduce temporary registration (TR) to enable dentists from other jurisdictions to perform clinical teaching or research in Hong Kong for a period not exceeding 14 days. A TR dentist cannot migrate to full registration.

Internship and period of assessment

To further enhance the professional standard of dentists, the Bill will require local dental graduates and non-locally trained dentists who opt to take the licensing examination directly to undergo a one-year internship or period of assessment before obtaining full registration by modelling on the prevailing practice for medical practitioners. The requirement will enhance their clinical experience in real-life work settings and enable them to get familiar with the practice in Hong Kong, thereby safeguarding patients' safety to a greater extent.

Under the new requirement, local dental graduates will need to undergo a one-year internship before obtaining full registration. As students of the local Bachelor of Dental Surgery programme about to graduate this summer have started to seek employment, the internship requirement will apply to local dental graduates of the class of 2025 and thereafter at the earliest.

As for non-locally trained dentists who are not admitted to Hong Kong through LR or SR but opt to take the licensing examination directly, they will, upon passing the licensing examination, need to undergo a period of assessment for one year (or a duration specified by the DCHK, subject to the dentist's clinical experience) before obtaining full registration.

The exact timing for implementing the above arrangements for internship and period of assessment will hinge on the actual legislative progress.

Registration system for dental care professionals

At present, two categories of ancillary dental workers in Hong Kong directly provide dental care services to patients under the supervision of dentists. They include:

(1) Dental hygienists (Note): To perform preventive dental care (e.g. oral examination, education, teeth cleaning and polishing, fluoride application, as well as scaling); and

(2) Dental therapists: Currently employed by the DH only to provide school dental care service and perform preventive dental care and basic curative dental care (e.g. filling and extraction).

The Bill will update the regulatory regime for ancillary dental workers by introducing a statutory registration system, while retitling the relevant workers as dental care professionals (DenCPs). Meanwhile, the Bill will suitably adjust the scope of practice of dental hygienists and dental therapists on a risk-based approach by specifying the types of dental work they can perform and the related conditions. This serves to establish the professional status of these workers, while ensuring their service quality under a more formalised regulatory regime to safeguard the rights of patients.

Upon legislative amendment, dental hygienists and dental therapists must be engaged by a registered dentist(s), or a partnership, organisation, establishment or body corporate which has engaged registered dentist(s), for practice. The Government expects the DCHK to put in place the statutory registration system for DenCPs within three years after passage of the Bill to enable dental therapists to work in organisations other than the DH (including those in the public or private sector).

Other amendments

The Bill will specify continuing professional development as a mandatory requirement for dentists and DenCPs in a bid to maintain their professional competencies, and also revamp the composition and structure of the DCHK to cater for its additional statutory functions. Furthermore, the Bill will make other technical amendments, such as updating the definition of practising dentistry, to bring the regulatory regime up to date.

Note: The existing Chinese title of dental hygienists (牙齒衞生員) is not in line with that of dental therapists (牙科治療師). Their current scope of work is not limited to teeth (牙齒) (such as taking x-ray films inter-orally or extra-orally for the investigation of lesions of the mouth, jaw, teeth and associated structures). The Government will rename the title as "牙科衞生員" when introducing the statutory registration system.

For relevant press release, please visit https://www.info.gov.hk/gia/general/202403/27/P2024032700445.htm?fontSize=1.

CE signs Safeguarding National Security Ordinance

The Chief Executive, Mr John Lee, signed on 22 March 2024, in accordance with Article 48(3) of the Basic Law, the Safeguarding National Security Ordinance passed by the Legislative Council. The Ordinance took effect upon gazettal on 23 March.

"The Safeguarding National Security Ordinance officially took effect on 23 March 2024, ensuring the effective protection of national security. It signifies that the Hong Kong Special Administrative Region (HKSAR) has fulfilled its constitutional responsibility as stipulated in Article 23 of the Basic Law to enact local legislation to safeguard national security, and accomplished a historic mission, living up to the trust placed in us by the Central Authorities and the country," Mr Lee said.

"The completion of the legislation of Article 23 of the Basic Law is essential to the implementation of the principle of 'one country, two systems', ensuring the effective protection of national security of 'one country' and the long-term prosperity and stability of the HKSAR under 'two systems'."

"The Safeguarding National Security Ordinance will bring safety to society. With safety comes stability; with stability comes prosperity. A safe and stable environment is crucial to the success of business activities and enterprises, without which businesses might suffer financial losses, and their investments and operations could be sabotaged or come under attack. Therefore, a safe and stable environment will make Hong Kong an attractive place for enterprises and investments."

"While safeguarding security, the Safeguarding National Security Ordinance ensures human rights and freedoms are protected, and the principles of protecting human rights and freedoms have already been clearly and explicitly stipulated in the legal provisions, indicating that, under the Ordinance, human rights are to be respected and protected, and the rights and freedoms, including the freedoms of speech, of the press and of publication, the freedoms of association, of assembly, of procession and of demonstration, enjoyed under the Basic Law and the provisions of two international covenants as applied to the HKSAR, namely the International Covenant on Civil and Political Rights and the International Covenant on Economic, Social and Cultural Rights, are to be protected in accordance with the law. The Ordinance also, as stipulated, ensures the property and investment in the HKSAR are protected by the law."

"The Ordinance fully implements the requirements set out in Article 23 of the Basic Law, the Decision of the National People's Congress on Establishing and Improving the Legal System and Enforcement Mechanisms for the HKSAR to Safeguard National Security (5.28 Decision), and the Hong Kong National Security Law for improving the legal system and enforcement mechanisms for the HKSAR to safeguard national security, ensuring the comprehensiveness and effectiveness of the protection of national security. The HKSAR Government will effectively discharge its responsibilities and carry out the work under the Safeguarding National Security Ordinance. It will also continue to enhance public education and publicity to deepen public understanding of the necessity of safeguarding national security and its pivotal role in maintaining the long-term prosperity and stability of Hong Kong."

"From tomorrow on (23 March 2024), the national security of the HKSAR will be more effectively safeguarded, allowing Hong Kong to move forward without worries or burden. The HKSAR Government will continue to lead Hong Kong in fully focusing on economic development, improving people's livelihoods, and maintaining the long-term prosperity and stability of the city, with a view to creating a brighter and more abundant future together."

For relevant press release, please visit https://www.info.gov.hk/gia/general/202403/22/P2024032200642.htm.

HKMA and SFC further consult on enhancements to Hong Kong's OTC derivatives reporting regime

The Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) launched on 22 March 2024 a joint further consultation on enhancements to the over-the-counter (OTC) derivatives reporting regime in Hong Kong.

To align with global standards, the HKMA and the SFC conducted a consultation in April 2019, and one of the proposed requirements was identifying transactions submitted to the Hong Kong Trade Repository (HKTR) for the reporting obligation by a Unique Transaction Identifier (Notes 1 and 2).

The current joint further consultation consults on the implementation of the Unique Transaction Identifier, together with the mandatory use of Unique Product Identifier and Critical Data Elements for submission of transactions to the HKTR (Notes 3 and 4). These proposals ensure that Hong Kong's reporting regime keeps up with international developments.

The HKMA and the SFC also concluded that the list of designated jurisdictions for the masking relief of the reporting obligation remains unchanged (Note 5).

The joint consultation paper can be downloaded from the websites of the HKMA or the SFC. Interested parties are invited to submit comments to the HKMA or the SFC on the proposals by 17 May 2024.

For relevant press release, please visit https://www.info.gov.hk/gia/general/202403/22/P2024032200512.htm.

Note 1: Phase 2 reporting of the OTC derivatives transactions came into effect on July 1, 2017, covering all five major asset classes (interest rates, foreign exchange, credit, commodities and equities) of the OTC derivatives.

Note 2: Unique Transaction Identifier is a unique identifier assigned to identify each reported OTC derivatives transaction with the structure and format as set out in the Technical Guidance on Harmonisation of the Unique Transaction Identifier issued by the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) in February 2017.

Note 3: Unique Product Identifier is a unique identifier to denote a specific OTC derivatives product with the structure and format as set out in the Technical Guidance on Harmonisation of the Unique Product Identifier issued by the CPMI and IOSCO in September 2017.

Note 4: Critical Data Elements are a standard set of OTC derivatives transaction data elements (other than Unique Transaction Identifier and Unique Product Identifier), formats and allowable values published by the CPMI and the IOSCO in April 2018 and by the Regulatory Oversight Committee of the Global Legal Entity Identifier Foundation in September 2021 and September 2023.

Note 5: Masking relief was introduced when phase 1 reporting took effect in July 2015 to deal with situations where a reporting entity is prevented from submitting certain information identifying the counterparty to the HKTR due to legal or regulatory barriers in certain jurisdictions. This enables reporting entities to mask counterparty information when they encounter reporting barriers in a jurisdiction that is on the SFC's designated list. In 2019, the SFC consulted the industry on revising the designated list in view of international developments and as a housekeeping exercise.

Second round of Labour Importation Scheme for Transport Sector - Public Light Bus/Coach Trade opens for applications till 26 April 2024

The second round of the Labour Importation Scheme for the Transport Sector - Public Light Bus/Coach Trade (Scheme) is open for application from 25 March 2024.

The application procedures and operational details of the Scheme are similar to those of the first round of application. Applicants who are interested in importing public light bus or coach drivers shall submit the completed application form together with the required documents to the Transport Department (TD) between 25 March and 26 April. An interdepartmental liaison group comprising representatives from the Transport and Logistics Bureau, the Labour Department (LD) and the TD will vet the applications, and approval decisions will be made by the Commissioner for Transport. The approval process will be completed in about two months' time after the end of the application period.

The TD will continue to engage in regular meetings with the stakeholder consultative group to listen to the views of stakeholders, including employers and labour representatives, on the Scheme. Information dissemination will also be enhanced through the consultative group in order to facilitate the smooth implementation and execution of the Scheme.

The Scheme details and application form can be found on the TD's website (www.td.gov.hk/en/lispc/index.html). For enquiries, please call 2804 2600.

Premised on safeguarding the employment of local labour, the Scheme was introduced in July 2023 to allow the transport sector to suitably import labour with a view to relieving the acute manpower shortage and facilitating the provision of reliable public transport services. A total of 969 quotas were approved under the first round of the Scheme in September 2023, with about 70 per cent having submitted to the Immigration Department visa applications for imported labour. For about half of these submitted applications, the drivers have arrived to undergo driving training and driving tests in Hong Kong and have been/will be deployed to assigned routes.

For relevant press release, please visit https://www.info.gov.hk/gia/general/202403/20/P2024032000505.htm.

Topical Issues

GDETO Newsletter

The latest issue of the Hong Kong Economic and Trade Office in Guangdong (GDETO) Newsletter has been published.

More Details (in Chinese only)

Commercial Information Circulars (CICs) of the Mainland

The TID issued a number of Commercial Information Circulars (CICs) on the Mainland's trade and economic rules and regulations.  The latest CICs have been published. 

More Details