Hong Kong launches tax-break plan to strengthen role as a corporate treasury base
Plan expands tax concessions and introduces pre-approval mechanism to lure multinationals to manage capital and risk in the city
“This sets out our targeted actions to strengthen Hong Kong as a premier hub for multinational corporate treasury centres and an optimal platform for ‘bringing in and going global’, leveraging the city’s strength as a leading international financial centre,” Hui said on Tuesday.
Tax is the central theme of the plan, which seeks a law change in the first half of next year to expand the scope of interest deductions eligible for the 50 per cent profit‑tax concession introduced in 2016.
The government also planned to introduce a pre-approval mechanism under which the Inland Revenue Department would grant approved corporate treasury centres favourable tax benefits for a renewable period, giving companies greater certainty, Hui said. Applications could begin next year if the Legislative Council approves the proposal.
Hui said the government would pursue more double-taxation agreements with major trading partners to prevent overseas companies using Hong Kong as a treasury base from being taxed twice.
Promotion and talent training were also part of the package, he added.