Hong Kong and Singapore travel bubble postponed for second time due to rising Covid-19 cases

A travel bubble between Hong Kong and Singapore due to open next week has been postponed for a second time, officials said on Monday, after a spike in cases in Singapore derailed the plan for quarantine-free travel between the financial hubs.

The bubble was initially slated to begin in November 2020, but was called off after a rise in cases in Hong Kong. It was announced in April that the delayed plan would start from May 26.

Under the plan, travellers would have to test negative for Covid-19 before departure and on arrival to move freely between the cities.

Hong Kong and Singapore have been largely successful in keeping the virus at bay over the past year with strict border controls and effective tracing of infections but new cases in Singapore in May have dashed hopes for the air travel bubble.

"In light of the recent increase in unlinked community cases, Singapore is unable to meet the criteria to start the Singapore-Hong Kong ATB [air travel bubble]," Singapore's Ministry of Transport said.

But both sides remained committed to launching the bubble safely, it said. The Hong Kong government said another announcement would come on or before Sunday, June 13.

Singapore announced on Friday its strictest curbs on social gatherings and public activities for months owing to a rise in community infections in recent days.

Hong Kong's daily cases have dropped to low single digits while the government has relaxed some coronavirus rules for vaccinated people in a move to incentivise residents to get inoculated.

The travel bubble was due to start with one flight a day into each city, with up to 200 travellers on each flight.

Officials had said that if the seven-day moving average of the daily number of unlinked local Covid-19 cases was more than five for either Singapore or Hong Kong, the scheme would be suspended.

For Hong Kong, which has banned non-residents coming to the city since March 2020, the deal with Singapore would have been its first travel link with another city.

Cathay Pacific and Singapore Airlines were due to be the airlines offering the initial flights.

The bio:

Favourite film:

Declan: It was The Commitments but now it’s Bohemian Rhapsody.

Heidi: The Long Kiss Goodnight.

Favourite holiday destination:

Declan: Las Vegas but I also love getting home to Ireland and seeing everyone back home.

Heidi: Australia but my dream destination would be to go to Cuba.

Favourite pastime:

Declan: I love brunching and socializing. Just basically having the craic.

Heidi: Paddleboarding and swimming.

Personal motto:

Declan: Take chances.

Heidi: Live, love, laugh and have no regrets.

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks.

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.

8. Pillar 2 implementation

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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Expo 2020 Dubai will be the first World Expo to be held in the Middle East, Africa and South Asia

The world fair will run for six months from October 20, 2020 to April 10, 2021.

It is expected to attract 25 million visits

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