Hong Kong Tax News Flash
July 2026, Issue 13
Consultation on enhancing Corporate Treasury Centre tax concession launched
Following the 2026/27 Budget and the release of the Action Plan to Promote the Development of Corporate Treasury Centres in Hong Kong in the first half of 2026, the Government recently launched a public consultation on the proposed enhancements to the tax concession regime for corporate treasury centres (CTCs).
The CTC regime, first introduced in 2016, has attracted more CTCs to Hong Kong, although certain operational pain points have emerged in practice. Building on that experience and earlier industry feedback, the consultation sets out a proposed two-tiered regime to further promote the development of CTCs in Hong Kong, as follows:
- Tier 1–enhancing the existing regime applicable to all existing qualifying CTCs (QCTCs) and corporations conducting intra-group financing business in Hong Kong.
- Tier 2–introducing a pre-approval mechanism under which a pre-approved QCTC and its pre-approved associated corporations would be entitled to additional tax benefits or greater flexibilities.
We are pleased that the Government has adopted several of our recommendations in formulating the proposals. The consultation is now open for public comment until 4 September 2026. The Government intends to (i) issue administrative clarifications for enhancements to the existing CTC tax concession regime within 2026, and (ii) introduce into the Legislative Council in the first half of 2027 an amendment bill to implement the tiered regime.
This news flash outlines the key aspects of the proposed two-tiered regime together with our observations.
Contact us
South Private Clients and Family Office Tax Leader, PwC Hong Kong
Tel: +[852] 2289 3816
