James Lau, the Secretary for Financial Services and the Treasury in Hong Kong, announced the plan for Hong Kong to implement Automatic Exchange of Financial Account Information in Tax Matters and further expand its Comprehensive Avoidance of Double Taxation Agreements (CDTAs) network. The Secretary also indicated that Hong Kong is not going to expand its tax base considering the healthy fiscal reserve held currently by the Government.
As part of efforts in international tax co-operation, Hong Kong is going to implement the minimum standards of the package to counter base erosion and profit shifting by enterprises, and a passage of amendment bill has been submitted to Legislative Committee sometime ago. On implementing the Automatic Exchange of Financial Account Information in Tax Matters, the first exchanges with the jurisdictions concerned will commerce this September.
To date, Hong Kong has concluded 39 CDTAs, including one signed with India in mid-March this year. The Government intends to continue to expand Hong Kong's network of CDTAs. It is an ongoing process to identify potential negotiation partners, especially countries along the One Belt One Road Initiative, with a view to further expand CDTA network and bringing the total number of CDTAs to 50 over the next few years.
With the fast growth of China’s economy and the continuous improvement of the comprehensive strength of domestic enterprises, as well as the implementation of the “One Belt, One Road” policy, an increasing amount of Chinese enterprises are beginning to expand their global footprint and establish their presence in Europe.
TPA Global has developed a practical roadmap of 6 steps meant to guide CFOs in their Journey of rising above troubles to reach a situation of full control. These steps are presented in a series of short video clips (3-5 minutes):