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  • Create Date 5 十二月, 2018
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Positioning Hong Kong to Collaborate with the Greater Bay Area

This article provides background on the Guangdong-Hong Kong-Macau Bay Area (“the GBA”) initiative, summarises its current implementation status, and discusses a list of recommended tax and business measures for Hong Kong and the mainland that could support Hong Kong’s ability to address the challenges faced in fully capitalising on the opportunities arising from the GBA initiative. Taking into consideration the current tax legislation in Hong Kong and the existing tax and business regulations in the mainland, our recommended tax and business measures are: 1) refining the intellectual property (“IP”) taxation regime in Hong Kong; 2) enhancing research and development tax deduction in Hong Kong; 3) granting Hong Kong tax relief for plants and machinery and IP used in the GBA to produce Hong Kong chargeable profits; 4) reducing the individual tax and other costs in the mainland for Hong Kong residents working in the GBA; 5) allowing Hong Kong companies to set up branches in the GBA, and 6) reducing the labour-related costs of Hong Kong residents working in the mainland.