Hong Kong is set to benefit from the increase in investment in Asia, partly fuelled by the global financial crisis of the last two years, according to the Hong Kong government.
Hosting a cocktail reception to thank foreign investors for their support of Hong Kong on June 22, Chief Executive Donald Tsang said that the government is committed to capitalizing on this development and enhancing the city's competitiveness through a raft of initiatives.
He added: “These include the growing network of double taxation agreements, the Renminbi Trade Settlement scheme, and the development of six new growth industries where Hong Kong has clear advantages.
He said Hong Kong's economy expanded at its fastest pace in four years in the first quarter of 2010 with GDP growing 8.2% year-on-year.
"It was the fourth consecutive quarterly rise and above economists' expectations. This positive news is being reflected at Invest Hong Kong where the department continues to exceed its previous years' targets for completed investment projects. This year it is again on track to beat its target of 270 projects," Tsang observed.Director-General of Investment Promotion Simon Galpin was encouraged by the fact that InvestHK had helped 178 foreign companies set up or expand their operations in Hong Kong in the first six months of 2010. Thanking investors for helping to create almost 2,000 new jobs within the first year of their operation or expansion in Hong Kong, Galpin said: “In terms of geographical distribution, in the first half of 2010 the number of completed investment projects from Asia Pacific accounted for 39%, those from Europe for 31% and North America 24%. To support future potential growth from BRIC markets, we have hired additional consultants in India and Russia."
Hong Kong’s approach to foreign investment is very relaxed and in many cases there is 100% foreign investment in business. The Hong Kong government offers foreign investors attractive tax incentives and there are generally lower rates of tax in Hong Kong than most other Asian jurisdictions. These tax incentives include no capital gains tax, no tax on profits arising from outside Hong Kong and no tax on dividends. Hong Kong is also seen as a key strategic gateway to the rapidly expanding Chinese economy.
.Tags: tax | investment | business | multinationals | corporation tax | Hong Kong | tax incentives | dividends | group taxation | Hong Kong
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