Hong Kong Mulling Further Tax Breaks
The Hong Kong Government held a summit on October 23 to discuss new tax policies to boost the territory’s economy.
Government officials recalled several recently announced taxation measures, including the two-tier profits tax rates regime and the enhanced deduction for research and development expenditure, and sought participants’ views on further tax measures that would enhance the territory’s economic development.
“On the premise of ensuring the health of public finance, the Special Administrative Region Government should adopt forward-looking and strategic financial management principles in wisely using our accumulated fiscal surpluses, which are wealth derived from the community, to benefit the community,” said Hong Kong Chief Executive Carrie Lam at the event.
Financial Secretary Paul Chan emphasized that any new measures should be targeted, able to generate economic and social benefits, and allow Hong Kong to maintain the existing simple and low-tax regime, while adhering to international tax standards.