Order to scrap capital duty gazetted

March 16, 2012

The Companies Ordinance (Amendment of Eighth Schedule) Order 2012 to abolish capital duty was gazetted today.
 
Secretary for Financial Services & the Treasury Prof KC Chan said the order is to implement the Financial Secretary's proposal in the 2012-13 Budget Speech to abolish capital duty levied on local companies.
 
The amendments will be applicable to companies which lodge the documents about incorporation, increases in nominal share capital or the issuing of shares at a premium with the Companies Registry from June 1.
 
It is estimated the proposal will cost $90 million a year in government revenue.
 
Prof Chan said the initiative encourages investors to set up companies in Hong Kong to raise capital and expand their business.
 
The order will be tabled at the Legislative Council on March 21.