HK unveils plan to promote development of corporate treasury centers

Hong Kong has unveiled an action plan to promote the development of corporate treasury centers, aiming to attract more multinational corporations to establish or scale up their operations in the city.

Jointly formulated by the Financial Services and the Treasury Bureau, the Inland Revenue Department, the Hong Kong Monetary Authority, and Invest Hong Kong, the action plan adopts a "4T" framework – tax revamp, tax agreements, targeted promotion, talent, and dialogue, to encourage multinational corporations from around the world to centralize their fund management, asset allocation and risk management in the SAR.

The government will revamp the existing tax concession regime applicable to corporate treasury activities and introduce a more competitive tiered system, according to the plan.

Measures include refining the existing concession regime and introducing a pre-approval mechanism. Approved CTCs and their associated companies will enjoy more favorable tax benefits, greater tax certainty, and enhanced compliance flexibility, it said.

Authorities will continue to expand the network of comprehensive avoidance of double taxation agreements, and take a proactive approach in conducting targeted market promotion, with strategic focus on enterprises from the mainland and Asia, particularly those in new economy sectors, the plan said.

It will also work with the industry to strengthen the training of professional talent, as well as build a high-quality talent pool through continuous market education and professional development.

𝗗𝗼𝘄𝗻𝗹𝗼𝗮𝗱 𝗧𝗵𝗲 𝗦𝘁𝗮𝗻𝗱𝗮𝗿𝗱 𝗔𝗽𝗽 ↓