HONG KONG is promoting its low tax system to urge Filipino businesses and individuals to set up shop or invest in Hong Kong.
Alpha Lau, Director-General for Investment Promotion of Invest Hong Kong, was in Manila last week to encourage Filipino startups and big conglomerates to go to the city to expand their operations. She said Hong Kong is a good investment destination for all business size.
This is also timely, she said, because Hong Kong has simple tax rules, unlike the confusing trade tariffs in other parts of the world.
“Not only do we have no tariffs, our tax system is also the simplest in the world. For the first HK$2 million of profit, which is around US$350,000, a company making money will only get charged on 8.25 percent of tax and thereafter that max is 16 and a half,’ she said.’
She also added that in Hong Kong, there is either low or no Value Added Tax or Sales tax, capital gains tax, withholding tax on investments, estate duty, wine duty, and more.
Lau added that Hong Kong is also better than rival Singapore when it comes to investment opportunities.
“People either usually choose either Singapore or Hong Kong, and Hong Kong has proven to be very unique. We can access what Singapore can, but we can also access China,” she said.
She also revealed that they are in talks with the Philippine government for a Comprehensive Avoidance of Double Taxation Agreement, with the next round of talks scheduled in October.
“If you have this avoidance of double taxation agreement, you can take benefit of being in Hong Kong and not get still charged in your home country,” Lau said.
Libera Cheng, Director-General of the Hong Kong Economic and Trade Office in Jakarta, who was also in Manila, said they hope the talks could be completed soon as this agreement will help both Hong Kong and Filipino investors.
Cheng said: “Businessmen here they will no need to pay tax double, no need to pay tax twice. And they can choose to file their tax return in either city or both cities.”
They are confident of growing trade relations with the Philippines, including expansion of Filipino businesses in Hong Kong, but also encouraging more wealthy Filipino families to set up Family Offices in Hong Kong.
Hong Kong is the Philippines fifth largest trading partner with 17 percent of total China-Philippines trade routed via Hong Kong. There are also over 200,000 Filipinos living and working in Hong Kong and 1.2 million Filipino tourists visited Hong Kong in 2024, a 55 percent jump from the previous year. (ABS-CBN News)
