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Policy Statement & Submission

2020/07/31

Potential Tax Treaty Partners for Hong Kong

Your ref: TsyB R2 183/800-1/1/0 (C)

31 July 2020

Mr Stephen Lo
Principal Assistant Secretary for Financial Services & the Treasury (Treasury)(R2)
Financial Services and the Treasury Bureau
24/F, Central Government Offices
2 Tim Mei Avenue, Tamar
Hong Kong By Email and Post

Dear Mr Lo

Potential Tax Treaty Partners for Hong Kong

Thank you for your letter of 2 July 2020 inviting the Hong Kong General Chamber of Commerce to provide suggestions on prospective jurisdictions that Hong Kong should actively pursue Comprehensive Avoidance of Double Taxation Agreements (“CDTAs”).

The Chamber believes the pursuit of CDTAs is the right direction for Hong Kong in maintaining its role as a preferred conduit for facilitating the flow of international trade and investment. A wider network of CDTAs would also help us attract international businesses that are keen to capitalise on the opportunities that our unique position offers as a strategic gateway for investments in and out of the Mainland. As such, we recommend that the Government consider the jurisdictions on the attached list for CDTA discussions.

We also understand that the Government is currently engaged in CDTA negotiations with Germany, Nigeria and Turkey. Given the considerable market size of these three countries, we look forward to the successful conclusion of such negotiations as soon as practicable.

Yours sincerely

George Leung
CEO

Encl.


Proposed Potential CDTA Negotiation Partners

Jurisdictions Priority Reasons
Southeast Asia
East Timor

Low

  • Belt and Road economy

Laos

Medium
  • Belt and Road economy,
  • Free Trade Agreement with Hong Kong.

Myanmar

Medium
  • Belt and Road economy,
  • Free Trade Agreement with Hong Kong.

Philippines

Medium
  • Belt and Road economy,
  • APEC member,
  • Free Trade Agreement with Hong Kong.
Singapore High
  • Belt and Road economy,
  • Free Trade Agreement with Hong Kong,
  • APEC member,
  • Important trading partner and investment source.
Taiwan Medium
  • APEC member with extensive investments in Mainland China,
  • Important trading partner and investment source.
Central and Western Asia
Azerbaijan High
  • Belt and Road economy
Kazakhstan Medium
  • Belt and Road economy.
Australasia
Australia High
  • Free Trade Agreement with Hong Kong,
  • APEC member,
  • Important trading partner,
  • Major commodities/natural resources player that is of interest to Mainland investors.
Americas
United States Medium
  • Important trading partner,
  • APEC member.
Chile High
  • Hong Kong’s 3rd and 34th largest trading partner respectively in Latin America and the world,
  • APEC member
  • Fulfilment of an agreement in principle reached in October 2019,
  • Free Trade Agreement with Hong Kong.
Middle East and Africa
Algeria High
  • Belt and Road economy.
Egypt High
  • Belt and Road economy.
Libya Medium
  • Belt and Road economy but subject to the restoration of general law and order in the country.
Tunisia High
  • Belt and Road economy.
Central and Eastern Europe
Bulgaria High
  • Belt and Road economy.
Poland High
  • Belt and Road economy.
Southern and Northern Europe
Greece High
  • Belt and Road economy.
Sweden Medium
  • One of the top four European destinations for Chinese investment.
Iceland Medium
  • Free Trade Agreement with Hong Kong.

 

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