Professionals gave recommendations to improve competitiveness of the Hong Kong tax system
The tax system of Hong Kong still has a number of competitive advantages, such as simplicity, territorial principle, which implies tax levying only on the income gained within Hong Kong, with a fairly low tax rate of 16.5%. Nevertheless, tax rate reduction in the UK, Ireland, Turkey, and Taiwan challenges the attractiveness of the Hong Kong taxation.
That is why Hong Kong tax specialists have come forward with suggestions of a tax reform:
- Corporate tax rate reduction to 13.5%.
- Special tax benefits for Fintech companies.
- VAT introduction.
- Tax benefits for headquarters of international companies in various regions.
Meanwhile most specialists on international tax have confirmed that the Hong Kong tax system has more competitive advantages than those of Singapore.