Hong Kong Commerce Secretary Takes Swipe At Singapore Tax Breaks

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

13 January 2003

Hong Kong's Secretary for Commerce and Industry, Henry Tang has launched a stinging attack on the Singapore government's recently announced corporate tax break, according to a South China Morning Post report.

Speaking on Friday, Mr Tang reportedly dismissed the announcement that foreign companies locating in Singapore will receive a preferential tax rate of 15% rather than the usual 22%, arguing that the deal is not so attractive if examined closely, and that Hong Kong does not predict any substantial drop in investment as a result.

'As expected, there are many conditions, such as a three year time limit,' The SCMP quoted the Commerce and Industry Secretary as observing: 'This is a typical way Singapore way of doing things - it only looks good on the surface, but when you eat it, it's something different.

Citing Hong Kong's unconditional 16% corporate tax rate, Mr Tang went on to add:

'Investors are very smart. If the investor is fooled by this, this investor will not be very competitive.'

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