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Ernst & Young Tax Services Limited 22/F CITIC Tower, 1 Tim Mei Avenue, Central, Hong Kong, Hong Kong
Web: www.ey.com Taxation, Hong Kong
“Hong Kong has a very competitive and simple tax system, with only three direct taxes. This makes for an attractive tax environment for both Hong Kong based corporations and multinationals seeking to expand into Asia.”
racy Ho is the HK & Macau Tax Location Leader. Tracy has over 20 years of experience in providing tax consulting advice for multinational corporations with pan-Asian operations, on a range of matters, including inbound and outbound investments.
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Josh Colman is a Senior Tax Manager within the International Tax Services with over seven years of corporate tax experience. He advises corporations on cross border transactions in the Asia-pacific region. Josh has previously worked in Australia.
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What more can you tell us about your specific practice area at EY?
EY is one of the world’s most globally coordinated tax practices, with a network of 28,000 professionals in more than 120 countries dedicated to setting the standard for exceptional client service. Our Tax practice is organized across geographic areas and business lines to deliver services seamlessly to our clients. Our people and global resources are able to help clients develop and execute business strategies
quickly and effectively, with strong accountability and governance. In our EY Hong Kong tax division provides a service offering for all forms of tax services whether this is compliance or advisory, domestic or international, indirect or direct taxes, we help businesses to navigate the shifting tax landscape. Our practitioners in Hong Kong blend local country technical knowledge with appropriate regional and global insight on the latest developments in tax policy, legislation and administration. Our commitment to exceptional client service is centered upon quality, connectivity, responsiveness and insight. We strive to develop a detailed understanding of our clients’ business and industry sector to offer insights on market developments and help our clients develop effective strategies and business models.
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How would you characterise Hong Kong’s tax environment?
Hong Kong has a very competitive and simple tax system, with only three direct taxes (i.e. profits tax, salaries tax and property tax). This makes for an attractive tax environment for both Hong Kong based corporations and multinationals
seeking to expand into Asia. Hong Kong is also seeking to expand its tax treaty network so as to stay competitive with Singapore as a regional centre. Hong Kong remains the destination of choice for investment into China. This is attributable to the favourable tax treaty and close connection between Hong Kong and China, and the fact that it is becoming increasingly important to be able to move substance (i.e., people, assets, and operations) into the investment company location.
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What can Hong Kong do to its tax system to continue to remain
competitive in the region?
Hong Kong should consider tax incentives to targeted industries to attract new talent and business. In January, Hong Kong passed legislation for tax incentives for captive insurers who set up in Hong Kong, which will help reinforce Hong Kong’s status as a regional insurance hub. However Hong Kong needs to promote other industries expand the focus and growth of our economy. The Hong Kong government has recently indicated its concern that incentives aimed at developing certain