Page 464 - 2018 White Paper on the Business Environment in China
P. 464
8 White Paper on the Business Environment in China
· Securities against foreign rivals such as London and Singapore, the
· Hospital services central government allowed foreign investors to invest
· Social services in RMB-denominated exchange trade funds in Hong
· Tourism Kong. Additionally, the government will support third
· Cultural parties using Hong Kong as a venue to settle trade and
· Sporting investments in RMB, and further enrich offshore RMB
· Maritime transport products in Hong Kong, according to Xinhua.
· Air transport
· Road transport In terms of infrastructure development, the Hong
· Freight forwarding agency Kong-Zhuhai-Macau Bridge is expected to reduce
· Trade mark agency travel time between Hong Kong and each city from 4.5
hours to approximately 40 minutes.The SAR is currently
Furthermore, under the Circular, service providers undergoing an ambitious transport infrastructure
of Hong Kong and Macao are permitted to establish program, and has allocated a budget of HK$15.5 billion to
wholly-invested entertainment places in the pilot areas be spent on major road and railway projects.The entirety
of Qianhai, Shenzhen and Hengqin, Zhuhai. of this program is expected to be completed in 2020.
Hong Kong’s savvy global business environment has Hong Kong follows a free trade policy and hence
paired well with the PRD’s competitive manufacturing maintains basically no barriers to trade: there are no
base. According to China Customs’ statistics, Hong Kong customs tariffs on goods imported into or exported from
is the country’s second largest trading partner after the Hong Kong. Import and export licensing are kept to a
United States. In 2016, mainland imports from Hong minimum. Most products do not need licenses to enter
Kong amounted to RMB110.75 billion, while exports to or leave Hong Kong and where licenses or notifications
Hong Kong were RMB1.90087 trillion. are required, they are only intended to fulfill obligations
under various international agreements, or to maintain
Hong Kong overtook London and New York to public health, safety or security.
claim the top spot in the 2011 World Economic Forum
Financial Development Index, marking 2011 as the first Spotlight on Hong Kong Taxes
year an Asian city has topped the rankings. The World
Economic Forum is based on several financial indicators, Corporate Income Tax
including financial access, business environment,
banking and financial services, transparency, institutional Hong Kong’s simple and business-friendly tax system
environment, non-banking financial services and is a major attraction for foreign investors. Corporate
financial markets. Hong Kong is consecutively ranked as income tax rates may differ slightly from year to year in
the world’s freest economy by the Wall Street Journal and Hong Kong. For the year of assessment 2008/09 onwards,
Heritage Foundation. the tax rate for corporations is 16.5 percent, and the
profit tax rate for partnerships and sole traders is 15
The Chinese central government plans to develop percent. And recently, Mrs Lam, the new Chief Executive,
Hong Kong as an offshore RMB market and an unveiled new tax measures to reduce the burden on
increasingly prominent cross-border RMB trade channel. companies, including a two-tiered profits tax system that
These measures will support Hong Kong enterprises would lower the profits tax rate to 8.25 percent - half the
in making RMB-denominated direct investments into current standard rate - on the first HK$2 million of profit.
the mainland, according to statements by Chinese Vice A bill to implement the new initiatives will be submitted
Premier Li Keqiang in August 2011. Li also stated that to the Legislative Council as soon as possible.
the central government will support the development
of offshore RMB financial products in Hong Kong and Hong Kong adopts a territorial source principle of
that cross-border trade settlements in RMB should be taxation, which means that only profits sourced in Hong
extended to cover the whole country. As of the end Kong are taxable in Hong Kong. There is no distinction
of 2014, Hong Kong held the world’s largest pool of made between residents and non-residents, which
offshore RMB funds with total deposits of RMB1.15 means that residents can derive profits from abroad
trillion. To further increase the city’s competitiveness without being taxed, while non-residents may be taxed
464
· Securities against foreign rivals such as London and Singapore, the
· Hospital services central government allowed foreign investors to invest
· Social services in RMB-denominated exchange trade funds in Hong
· Tourism Kong. Additionally, the government will support third
· Cultural parties using Hong Kong as a venue to settle trade and
· Sporting investments in RMB, and further enrich offshore RMB
· Maritime transport products in Hong Kong, according to Xinhua.
· Air transport
· Road transport In terms of infrastructure development, the Hong
· Freight forwarding agency Kong-Zhuhai-Macau Bridge is expected to reduce
· Trade mark agency travel time between Hong Kong and each city from 4.5
hours to approximately 40 minutes.The SAR is currently
Furthermore, under the Circular, service providers undergoing an ambitious transport infrastructure
of Hong Kong and Macao are permitted to establish program, and has allocated a budget of HK$15.5 billion to
wholly-invested entertainment places in the pilot areas be spent on major road and railway projects.The entirety
of Qianhai, Shenzhen and Hengqin, Zhuhai. of this program is expected to be completed in 2020.
Hong Kong’s savvy global business environment has Hong Kong follows a free trade policy and hence
paired well with the PRD’s competitive manufacturing maintains basically no barriers to trade: there are no
base. According to China Customs’ statistics, Hong Kong customs tariffs on goods imported into or exported from
is the country’s second largest trading partner after the Hong Kong. Import and export licensing are kept to a
United States. In 2016, mainland imports from Hong minimum. Most products do not need licenses to enter
Kong amounted to RMB110.75 billion, while exports to or leave Hong Kong and where licenses or notifications
Hong Kong were RMB1.90087 trillion. are required, they are only intended to fulfill obligations
under various international agreements, or to maintain
Hong Kong overtook London and New York to public health, safety or security.
claim the top spot in the 2011 World Economic Forum
Financial Development Index, marking 2011 as the first Spotlight on Hong Kong Taxes
year an Asian city has topped the rankings. The World
Economic Forum is based on several financial indicators, Corporate Income Tax
including financial access, business environment,
banking and financial services, transparency, institutional Hong Kong’s simple and business-friendly tax system
environment, non-banking financial services and is a major attraction for foreign investors. Corporate
financial markets. Hong Kong is consecutively ranked as income tax rates may differ slightly from year to year in
the world’s freest economy by the Wall Street Journal and Hong Kong. For the year of assessment 2008/09 onwards,
Heritage Foundation. the tax rate for corporations is 16.5 percent, and the
profit tax rate for partnerships and sole traders is 15
The Chinese central government plans to develop percent. And recently, Mrs Lam, the new Chief Executive,
Hong Kong as an offshore RMB market and an unveiled new tax measures to reduce the burden on
increasingly prominent cross-border RMB trade channel. companies, including a two-tiered profits tax system that
These measures will support Hong Kong enterprises would lower the profits tax rate to 8.25 percent - half the
in making RMB-denominated direct investments into current standard rate - on the first HK$2 million of profit.
the mainland, according to statements by Chinese Vice A bill to implement the new initiatives will be submitted
Premier Li Keqiang in August 2011. Li also stated that to the Legislative Council as soon as possible.
the central government will support the development
of offshore RMB financial products in Hong Kong and Hong Kong adopts a territorial source principle of
that cross-border trade settlements in RMB should be taxation, which means that only profits sourced in Hong
extended to cover the whole country. As of the end Kong are taxable in Hong Kong. There is no distinction
of 2014, Hong Kong held the world’s largest pool of made between residents and non-residents, which
offshore RMB funds with total deposits of RMB1.15 means that residents can derive profits from abroad
trillion. To further increase the city’s competitiveness without being taxed, while non-residents may be taxed
464
