On 9th September, a week before the Mid-Autumn Festival, the Hong Kong Government Inland Revenue Department (IRD) announced the detail rules of the new Corporate Treasury Centre (CTC) Policy in the form of Practice Notes. This is a very positive and important step towards establishing Hong Kong as a corporate treasury hub and an official recognition of the importance of professional treasury management.
The new Corporate Treasury Centre policy provides corporations the opportunity to improve their competitiveness by adopting a professionally managed CTC platform and achieve sustainable tax savings that will support their global business development.
The design of the scheme has taken into consideration the need to remove tax asymmetry which in the past were unfavourable to corporations genuinely performing intra-group financing, as well as the need to forestall aggressive tax avoidance schemes and avoid giving the impression that Hong Kong is becoming a tax haven.
Puay Khoon Lee
Tel: + 2289 3828