Hong Kong may be 'restrained' by new global tax rules, Chan says
[HONG KONG] The proposed changes to the global tax regime may affect some of the tax concessions the Hong Kong government offers to various industries, Financial Secretary Paul Chan said.
Speaking in the city's legislature Monday, Mr Chan addressed the agreement by the Group of Seven finance ministers on the weekend for a minimum corporate tax rate of "at least 15 per cent" for multinationals and upcoming broader talks.
"We would like to use low tax rates to promote development for certain sectors so we may be restrained by using low tax rate regime as a competitive method," Mr Chan said in response to a lawmaker's question. "So we may have to resort to alternative methods." Mr Chan's comments were translated from Cantonese.
The reform talks led by the Organization for Economic Cooperation and Development "will change the global tax landscape" and the city will strive to maintain a simple tax regime to maintain competitiveness, Mr Chan said.
BLOOMBERG
Read more:
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
G-7's global minimum tax deal may nullify any tax advantage Singapore offers
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
Malaysia ex-PM Mahathir facing anti-graft probe in a case involving his sons
BOE reports record usage of short-term liquidity repo
Philippines central bank not seeing rate hike despite peso weakness: finmin
Middle East tensions threaten global progress on inflation: World Bank
Heatstroke kills 30 in Thailand this year as South-east Asia bakes
Thailand to appoint former energy executive Pichai as finance minister, sources say