Secretary for Financial Services & the Treasury Christopher Hui today unveiled the “Action Plan to Promote the Development of Corporate Treasury Centres in Hong Kong”.
The action plan sets out targeted strategies to strengthen Hong Kong as a premier hub for multinational corporate treasury centres (CTCs), elevating Hong Kong as a major base for CTCs, and reinforcing its role as a platform for “bringing in and going global”.
Jointly formulated by the Financial Services & the Treasury Bureau, the Inland Revenue Department, the Monetary Authority and Invest Hong Kong, the action plan has two major objectives: to attract more multinational corporations to establish CTCs in Hong Kong, and to enable existing CTCs operating in Hong Kong to scale up their operations and fully leverage the city’s comprehensive financial ecosystem.
Unveiling the action plan at the Corporate Treasury Centre Forum, Mr Hui highlighted that the plan adopts a “4T” framework – tax revamp, tax agreements, targeted promotion, talent and dialogue – to encourage multinational corporations from around the world to centralise their fund management, asset allocation and risk management in Hong Kong.
Specifically, the Government will revamp the existing tax concession regime applicable to corporate treasury activities and introduce a more competitive tiered system. Measures include refining the existing concession regime and introducing a pre-approval mechanism.
It will continue to expand the network of Comprehensive Avoidance of Double Taxation Agreements, with a particular focus on engaging economies along the Belt & Road.
It will also will take a proactive approach in conducting targeted market promotion, with strategic focus on enterprises from the Chinese Mainland and Asia, particularly those in new economy sectors.
Furthermore, the Government will work with the industry to strengthen the training of professional talent, as well as build a high-quality talent pool for the long-term development of the sector through continuous market education and professional development.
Mr Hui said: “Amid the prevailing uncertainties in the global landscape, Hong Kong offers multinational corporations a business platform that is as steady as a rock – safe, stable and highly predictable.
“I urge enterprises to capitalise on these opportunities ahead and utilise Hong Kong’s unique edge in ‘bringing in and going global’ to consolidate the management of their capital and business operations in Hong Kong.”
