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Hong Kong to maintain simple tax system: official

Xinhua | Updated: 2021-06-08 10:35
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HONG KONG - Hong Kong will continue to improve its business environment and competitiveness by maintaining its simple tax system and reducing the compliance burden on companies, an official said Monday.

Paul Chan, financial secretary of the Hong Kong Special Administrative Region government, made the remarks at a meeting of the Legislative Council.

The remarks came after the Group of Seven (G7) industrialized nations agreed to support new rules that feature a 15 percent global minimum corporation tax rate.

As the digitization in the global economy has posed a risk of tax base erosion and profit shifting (BEPS), Hong Kong has been actively participating in the discussion about the BEPS 2.0 plan led by the Organization for Economic Cooperation and Development and the Group of 20, Chan said.

Chan acknowledged that the G7's proposal will offset the advantage of areas that attract foreign investment by a low tax rate.

Hong Kong will implement the BEPS 2.0 plan based on international consensus, and will strive to reduce the burden on affected companies and continue to improve Hong Kong's business environment and competitiveness, Chan said.

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