Hong Kong Office
Hong Kong’s newly-appointed Chief Executive, Carrie Lam Cheng Yuet-ngor, delivered her first policy address in October 2017. It included new approaches to business taxes, a reduction in profits tax rates for small and medium size enterprises, and increased incentives for Research and Development.
The policy address is normally given in January, however the Chief Executive brought it forward to October in order to give the legislative council more time to discuss the proposals in her address.
Lam proposed that a reduced rate of profits tax of 8.25% apply on the first HK$2 million of business profits; and standard rate profits tax of 16.5% continue to apply on profits over that amount. However only one enterprise nominated by each business group will be eligible for the lower tax rate.
Investment in Research and Development will be encouraged by the introduction of a 300% deduction on the first HK$2 million invested, and 200% on the remainder of the investment.
Lam also announced that Hong Kong will seek to extend the number of Double Taxation Agreements to fifty in the next few years.
We will write a more detailed analysis of the policy changes that may affect our international clients, together with details of any new opportunities this may provide, once the proposed changes become law.
Mann Made has extensive experience in helping its clients internationally in their business and personal lives.
For more information, please contact our Hong Kong office by email to Craig Murphy.