Hong Kong believes in vivifying force of tax privileges

28.02.2012 In the project of Hong Kong state budget for 2012-2013 there are pleasant surprises for tax bearers. According to officials, tax privileges for individuals and business will stimulate economic activity, and also will strengthen the investment appeal of this jurisdiction.

In particular, it is offered not to raise the gathering for business registration in 2012-2013 and to cancel the capital duty.

Besides the authority suggests to lower on 75 % the individual income tax to 12000 Hong Kong dollars.

By experts estimates, the improvement of tax climate will cost to the budget of the country nearly ten billions Hong Kong dollars, however, according to the rates of economic development, this state can allow it.

Expert’s opinion

«It should be notice, this country feel so certain that decided not to collect all charges for the company registration. While in Cyprus additional annual payments have just been entered, Hong Kong won't suffer from the absence of this gathering.

Certainly, bank sector is very developed in this region that allows to involve new investments and to become world financial center on a level with Singapore. Let's remind that Hong Kong is interesting from the point of view of taxation optimization at trading company registration.

If there is ignorance of the activity in the territory of the country, and also if there is not the instruction that the place of contract is Hong Kong, the taxation rate can be brought to naught.»

On the basis: http://www.news.gov.hk

Lomakina Irina ( the director of Moscow office of Honest & Bright)