Hong Kong Business Looks For Profits Tax Cut

by Mary Swire, Tax-News.com, Hong Kong

17 September 2010

In its submission to the Chief Executive of Hong Kong ahead of his Policy Address for 2010-2011 next month, the Hong Kong General Chamber of Commerce (HKGCC) has called for decisive government action on assisting small-to-medium-sized enterprises (SMEs) during the fragile economic recovery, and on improving Hong Kong’s attractiveness as a business hub.

The HKGCC advocates that long-term support should be considered for assisting the financing needs of SMEs, while some of the long standing schemes for SMEs should be more flexible to meet their needs.

“Hong Kong’s economic recovery is still subject to many uncertainties, not least because of continuing worries about the global economy. We must not lower our guard,” said HKGCC’s Chairman, Anthony Wu. He also said Hong Kong must be able to achieve sustainable economic growth and generate jobs in order to benefit people of different income groups.

Therefore, the HKGCC reiterates in its submission that it remains expectant that profits tax, currently 16.5%, will be lowered to 15%. “Reducing profits tax back to 15% will send a clear signal to the international business community that we are determined to stay competitive in the face of intense regional competition,” said Wu.

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