Is Hong Kong introducing a global minimum tax?

12.02.2024 The Hong Kong government is starting to discuss proposals for a global minimum tax of 15% and a domestic additional tax, which are planned to be introduced from 2025 for international companies. Over the next few months, until March 20, 2024, a period of public consultations with business representatives will take place, after which the bill is expected to be published by the end of 2024.

The proposed taxes comply with the global standards for combating the erosion of the tax base (GloBE rules) established by the OECD. The changes will take effect no earlier than 2025.

These measures have already been announced by the Government and have provoked a strong reaction from the international business community. The main purpose of these changes is to combat tax evasion by transferring profits offshore. The introduction of new taxes should lead to an increase in budget revenues and an improvement in the economic situation in the region. However, it may also cause a wave of relocation of international companies from Hong Kong to other countries where tax laws are more loyal.

Link to the source: https://www.fstb.gov.hk/tb/en/others/Consultation%20paper_Global%20minimum%20tax%20and%20HKMTT%20(En...