On 5 October 2026, the Secretary for Financial Services and the Treasury delivered opening remarks at the Legislative Council Panel on Financial Affairs regarding the preferential policy package for promoting industry and investment, with a focus on tax relief measures. The speech outlines the government’s strategy to enhance Hong Kong’s competitiveness through targeted tax incentives, reinforcing the city’s status as an international business hub. The policy package aligns with the broader objective of fostering high-value industries and attracting foreign capital while maintaining fiscal sustainability.
Key Takeaways
- Enhanced Tax Deductions for Strategic Industries: The government proposes super-deductions for research and development expenditure and capital investment in designated high-tech sectors, including artificial intelligence, biotechnology, and green finance.
- Corporate Treasury Centre Tax Credit: A new tax credit scheme will be introduced for qualifying corporate treasury centres, offering profits tax concessions on qualifying income to encourage multinational companies to centralize treasury functions in Hong Kong.
- Alignment with OECD BEPS 2.0: The Secretary reaffirmed Hong Kong’s commitment to implementing the OECD Pillar Two global minimum tax framework from 2025, while ensuring that the new incentives complement rather than conflict with the minimum tax rules.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement