HONG KONG, Aug 17, 2026 — PwC Hong Kong has welcomed the government’s public consultation on proposed reforms to the city’s tax concession regime for corporate treasury centres (CTCs), aimed at attracting more multinational enterprises to establish operations in the territory.
The proposal introduces a two-tier system, offering greater flexibility and additional tax benefits to pre-approved qualifying corporate treasury centres (QCTCs). Key measures include a five-year concessionary period with renewal options, relaxed interest deductibility conditions, and a 50% tax exemption on interest income for Hong Kong associated corporations, according to PwC.
Authorities said the reforms align with Hong Kong’s first Five-Year Plan and the national 15th Five-Year Plan, reinforcing the city’s position as an international financial hub. PwC suggested the measures take effect from the 2026/27 year of assessment, with the Inland Revenue Department accepting applications once the bill is gazetted.
