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Hong Kong lawmakers say 5-year tax incentives are too short

The proposed preferential profits tax rate would be 5% or 8.25%, versus Hong Kong’s standard 16.5% corporate tax rate, for up to five years.

Reported · Written up by our desk · China

Hong Kong lawmakers have backed the government’s proposed tax incentives for large innovative companies, but many said the planned five year concession period is too short to attract major firms to set up headquarters or expand operations in the city, according to SCMP Economy.

Chief Executive John Lee Ka-chiu said in his policy address last month that the government would submit a bill offering preferential profits tax rates of 5% or 8.25% for selected innovative enterprises for up to five years, compared with the city’s standard corporate tax rate of 16.5%.

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