The Hong Kong government plans to offer more tax incentives for corporate treasury centres (CTCs) including half-rate tax concession for CTCs.

 

The applicable tax rate will be cut from the current 16.5% to 8.25% making it the lowest in Asia, says Hong Kong Monetary Authority deputy chief executive  Eddie Yue in a keynote speech during The Asset 2nd Asia Treasury & Trade Summit held at the Four Seasons Hotel, Hong Kong.

 

“Broadly speaking, the scope of this concession encompasses corporate finance, liquidity management and risk management,  activities typically conducted by CTCs for their non-Hong Kong associated corporations,” Yue says.

 

The concessionary tax rate at 8.25% will be among the most competitive in the region and can be obtained through simple election as part of a corporation’s tax filing process.

 

“In other words,  no separate complicated approval process will be involved. I’m delighted to say the relevant bill to give effect to these changes is now with the Legislative Council and the government hopes to have the bill passed by the middle of the year,” Yue says.