Executive summaryHong Kong enacted the Inland Revenue (Amendment) (Miscellaneous Provisions) Bill 2021 (the New Law) on 11 June 2021,1 which addresses the tax implications of court-free amalgamations of companies.2 The New Law applies to court-free amalgamation of companies occurring on or after 11 June 2021.This Alert summarizes the key provisions of the New Law.Detailed discussionThe key provisions of the tax treatment are:Succession of trading stockIf trading stock succeeded from an amalgamating company continues to be used as trading stock of the amalgamated company (i.e., the surviving company), such trading stock is treated as being transferred at its book cost at the date...