|A Low, Simple and Predictable Tax Regime
Hong Kong has one of the world's most business-friendly and competitive tax regimes,
with a low corporate tax rate of 16%. The generous tax concessions introduced in the
1998 Budget have provided timely relief to businesses, and the 1999 Budget will go a
step further -
- Halve the ad valorem re-export declaration charge from 0.05% to 0.025%.
- Issue a new three-year business registration certificate at a fee of $5,200,
as an option to the annual registration certificate at $2,000.
- Extend the special relief rate of diesel duty, now at $2 per litre, until 31 March
- Significantly reduce maximum merchant shipping registration fees and annual tonnage
charges to $15,000 and $100,000 respectively.
- Exempt same-day transit passengers from Air Passenger Departure Tax.
- Abolish the 12-month restriction on stamp duty exemption for stock borrowing
- Extend the 50% tax concession on income from qualifying debt instruments to those
with face value as low as $50,000 (or equivalent in foreign currency).
- Exempt life insurance proceeds from estate duty regardless of where they are paid.