Hong Kong tax reforms for treasury centres will lure multinationals, mainland firms: PwC
The Hong Kong government’s plan to increase tax incentives for corporate treasury centres will be attractive to multinational and mainland firms considering such activities in the city, according to tax experts at PwC. The government is soliciting public comment from late July until September 4 for a range of tax reforms, after which a bill will be submitted to the Legislative Council in the…
Hong Kong's government is planning to introduce tax reforms aimed at increasing incentives for corporate treasury centres, which are expected to attract multinational and mainland firms to establish such operations in the city. According to Rex Ho, Asia-Pacific financial services tax leader at PwC Hong Kong, the proposed reforms will help bolster Hong Kong's financial ecosystem by making it more appealing for companies to manage their group cash flows, financing, investments, and risk management activities within the city.
The reforms will include a two-tier system of tax concessions, with smaller firms receiving a 50% tax deduction on profits from treasury-related operations and larger companies obtaining a five-year pre-approval mechanism for establishing operations in Hong Kong. This move comes as Hong Kong competes with other financial centers like Singapore and Dubai to secure the business of multinationals and mainland Chinese firms looking to set up corporate treasury centres.
Brief written by urgent.news from SCMP Business's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
