2017 Policy Address
The Hong Kong Chief Executive has announced the 2017 Policy Address, outlining Government’s plans for the economy and proposals for any changes to taxation. Our subject-matter experts share their views on the key issues that matter most to you and your business, and how we can create value to fuel the economic growth.
Boosting innovation and technology through R&D tax incentives
Innovation is an engine of economic growth. We believe the tax deduction on research & development (R&D) expenses announced in 2017 Policy Address could stimulate the overall R&D expenditure of Hong Kong to catch up with international benchmarks. However, enhanced regime and more clarity are essential to make the R&D incentives distinctive and create more values to the wider economy.
New tax measures announced to support economic growth and diversification
HKSAR Government has announced new tax measures in the 2017 Policy Address, worth noting a two-tier profit tax system for small and medium sized enterprises (SMEs) and a super tax deduction for qualifying research and development expenditure.
We welcome the Government’s initiative of strategically utilising tax measures as a tool to support the growth of targeted sectors/industries and promote economic diversification in Hong Kong. Learn more about our views and how it impacts your business.
Different pace of development among the Bay Area cities creates long-term opportunities
The National Development and Reform Commission (NDRC) and the governments of Guangdong province, Hong Kong and Macau have signed a framework agreement to step up their collaboration in the Bay Area. Although the 11 cities in the Bay Area are at different stages in their growth, we believe this creates tremendous opportunities for the region.
Aiming at encouraging Hong Kong corporates and individuals to do business in the Bay Area, our advocacy paper recommends HKSAR Government to:
Charles Lee, China South and Hong Kong Tax Leader, PwC Hong Kong
Roger Di, R&D Incentive Services Leader, PwC China
The next Hong Kong Budget will be delivered by the Financial Secretary on 28 February 2018.