Page 366 - 2017 White Paper
P. 366
7 White Paper on the Business Environment in China
· Distribution of 2014, Hong Kong held the world’s largest pool of
· Environment offshore RMB funds with total deposits of 1150 billion
· Banking yuan. To further increase the city’s competitiveness
· Securities against foreign rivals such as London and Singapore, the
· Hospital services central government allowed foreign investors to invest
· Social services in RMB-denominated exchange trade funds in Hong
· Tourism Kong. Additionally, the government will support third
· Cultural parties using Hong Kong as a venue to settle trade and
· Sporting investments in RMB, and further enrich offshore RMB
· Maritime transport products in Hong Kong, according to Xinhua.
· Air transport
· Road transport In terms of infrastructure development, the Hong
· Freight forwarding agency Kong-Zhuhai-Macau Bridge (construction scheduled
· Trade mark agency for 2009-2016) is expected to reduce travel time
between Hong Kong and each city from 4.5 hours
Furthermore, under the Circular, service providers to approximately 40 minutes.The SAR is currently
of Hong Kong and Macao are permitted to establish undergoing an ambitious transport infrastructure
wholly-invested entertainment places in the pilot areas program, and has allocated a budget of HK$15.5 billion
of Qianhai, Shenzhen and Hengqin, Zhuhai. to be spent on major road and railway projects.The
entirety of this program is expected to be completed in
Hong Kong’s savvy global business environment has 2020.
paired well with the PRD’s competitive manufacturing
base. According to China Customs’ statistics, Hong Kong Hong Kong follows a free trade policy and hence
is the country’s second largest trading partner after the maintains basically no barriers to trade: there are no
United States. In 2015, mainland imports from Hong customs tariffs on goods imported into or exported from
Kong amounted to 79.7 billion yuan, while exports to Hong Kong. Import and export licensing are kept to a
Hong Kong were 2058.9 billion yuan. minimum. Most products do not need licenses to enter
or leave Hong Kong and where licenses or notifications
Hong Kong overtook London and New York to are required, they are only intended to fulfill obligations
claim the top spot in the 2011 World Economic Forum under various international agreements, or to maintain
Financial Development Index, marking 2011 as the first public health, safety or security.
year an Asian city has topped the rankings. The World
Economic Forum is based on several financial indicators, Spotlight on Hong Kong Taxes
including financial access, business environment,
banking and financial services, transparency, institutional Corporate Income Tax
environment, non-banking financial services and
financial markets. Hong Kong is consecutively ranked Hong Kong’s simple and business-friendly tax system
as the world’s freest economy by the Wall Street Journal is a major attraction for foreign investors. Corporate
and Heritage Foundation. income tax rates may differ slightly from year to year
in Hong Kong. For the year of assessment 2008/09
The Chinese central government plans to develop onwards, the tax rate for corporations is 16.5 percent,
Hong Kong as an offshore RMB market and an and the profit tax rate for partnerships and sole traders is
increasingly prominent cross-border RMB trade channel. 15 percent.
These measures will support Hong Kong enterprises
in making RMB-denominated direct investments into Hong Kong adopts a territorial source principle of
the mainland, according to statements by Chinese Vice taxation, which means that only profits sourced in Hong
Premier Li Keqiang in August 2011. Li also stated that Kong are taxable in Hong Kong. There is no distinction
the central government will support the development made between residents and non-residents, which
of offshore RMB financial products in Hong Kong and means that residents can derive profits from abroad
that cross-border trade settlements in RMB should be without being taxed, while non-residents may be taxed
extended to cover the whole country. As of the end
366
· Distribution of 2014, Hong Kong held the world’s largest pool of
· Environment offshore RMB funds with total deposits of 1150 billion
· Banking yuan. To further increase the city’s competitiveness
· Securities against foreign rivals such as London and Singapore, the
· Hospital services central government allowed foreign investors to invest
· Social services in RMB-denominated exchange trade funds in Hong
· Tourism Kong. Additionally, the government will support third
· Cultural parties using Hong Kong as a venue to settle trade and
· Sporting investments in RMB, and further enrich offshore RMB
· Maritime transport products in Hong Kong, according to Xinhua.
· Air transport
· Road transport In terms of infrastructure development, the Hong
· Freight forwarding agency Kong-Zhuhai-Macau Bridge (construction scheduled
· Trade mark agency for 2009-2016) is expected to reduce travel time
between Hong Kong and each city from 4.5 hours
Furthermore, under the Circular, service providers to approximately 40 minutes.The SAR is currently
of Hong Kong and Macao are permitted to establish undergoing an ambitious transport infrastructure
wholly-invested entertainment places in the pilot areas program, and has allocated a budget of HK$15.5 billion
of Qianhai, Shenzhen and Hengqin, Zhuhai. to be spent on major road and railway projects.The
entirety of this program is expected to be completed in
Hong Kong’s savvy global business environment has 2020.
paired well with the PRD’s competitive manufacturing
base. According to China Customs’ statistics, Hong Kong Hong Kong follows a free trade policy and hence
is the country’s second largest trading partner after the maintains basically no barriers to trade: there are no
United States. In 2015, mainland imports from Hong customs tariffs on goods imported into or exported from
Kong amounted to 79.7 billion yuan, while exports to Hong Kong. Import and export licensing are kept to a
Hong Kong were 2058.9 billion yuan. minimum. Most products do not need licenses to enter
or leave Hong Kong and where licenses or notifications
Hong Kong overtook London and New York to are required, they are only intended to fulfill obligations
claim the top spot in the 2011 World Economic Forum under various international agreements, or to maintain
Financial Development Index, marking 2011 as the first public health, safety or security.
year an Asian city has topped the rankings. The World
Economic Forum is based on several financial indicators, Spotlight on Hong Kong Taxes
including financial access, business environment,
banking and financial services, transparency, institutional Corporate Income Tax
environment, non-banking financial services and
financial markets. Hong Kong is consecutively ranked Hong Kong’s simple and business-friendly tax system
as the world’s freest economy by the Wall Street Journal is a major attraction for foreign investors. Corporate
and Heritage Foundation. income tax rates may differ slightly from year to year
in Hong Kong. For the year of assessment 2008/09
The Chinese central government plans to develop onwards, the tax rate for corporations is 16.5 percent,
Hong Kong as an offshore RMB market and an and the profit tax rate for partnerships and sole traders is
increasingly prominent cross-border RMB trade channel. 15 percent.
These measures will support Hong Kong enterprises
in making RMB-denominated direct investments into Hong Kong adopts a territorial source principle of
the mainland, according to statements by Chinese Vice taxation, which means that only profits sourced in Hong
Premier Li Keqiang in August 2011. Li also stated that Kong are taxable in Hong Kong. There is no distinction
the central government will support the development made between residents and non-residents, which
of offshore RMB financial products in Hong Kong and means that residents can derive profits from abroad
that cross-border trade settlements in RMB should be without being taxed, while non-residents may be taxed
extended to cover the whole country. As of the end
366
