Hong Kong Treasury Centre Tax Proposals Generate New Corporate Interest

Proposed Hong Kong treasury centre tax reforms are generating one to two enquiries a month as companies assess whether enhanced concessions could make the city more competitive with Singapore, according to PwC.

The government consultation proposes expanding tax deductions for interest expenses to cover a broader range of corporations, bringing Hong Kong’s corporate treasury framework closer to Singapore’s arrangements.

The measures form part of wider efforts to reinforce the city’s position as an international financial and wealth management centre.

Separately, authorities have clarified that proposed tax concessions for fund managers and family offices will not extend to proprietary trading businesses.

The Financial Services and the Treasury Bureau said companies using their own capital to buy, sell or hold investments for income do not qualify because such activities fall outside the definition of a fund.

The distinction is intended to target incentives towards genuine fund management and treasury activities.