Hong Kong's Budget Deficit - 2024-2025

[Mirindix]

Isn't that the answer then - to tax capital rather than labour? Hong Kong has such huge capital flows and assets, a fraction of a percentage in taxing capital flows would hardly have any impact, yet provide so much revenue.

And the complexities associated with reporting and monitoring, abandoning also the "simple tax system" brand of HK...good luck in keeping the investors and 630K+ HNWs in Hong Kong enticed

[hullexile]

And the complexities associated with reporting and monitoring, abandoning also the "simple tax system" brand of HK...good luck in keeping the investors and 630K+ HNWs in Hong Kong enticed

Isn't it ironic that a communist state would base its tax policy around the need to keep the wealthy happy. You can almost feel Mao turning in his grave.

[Beanieskis]

well, high rent is the root cause of everything bad in Hong Kong.

don't know why rent hasn't gone down in Hong Kong despite (i) more than 5% of the population has left in the past two years, (ii) those remaining are spending thier money in the Greater Bay Area, and (iii) there are so many vacant shops in every district across Hong Kong.

Supply and demand.

Commercial rent has gone down in HK, because as you point out, there are lots of empty shops and offices.

Rent in many residential areas has not, because there is a shortage of appropriate residential accommodation in HK, that a fall of 5% in population doesn't really dent. Rent in some residential areas that have seen more of an exodus, has fallen.

[Mat]

all G7 countries have higher tax rates than Hong Kong.

I think almost all G20 countries as well...

All cities throughout the Greater Bay Area have higher tax rates than us.

China has higher tax rates than us.

https://en.wikipedia.org/wiki/List_o...s_by_tax_rates

So why can't Hong Kong have higher tax rates, especially when our fiscal reverse is going very low?

Wrong - Macao has lower tax rate.

[nivek2046]

would these companies move to other jurisdictions if Hong Kong's profit tax goes up?

https://www.tradingview.com/markets/...est-employers/

[PLamHK]

would these companies move to other jurisdictions if Hong Kong's profit tax goes up?

The vast majority of those companies are incorporated in the mainland and pay little to no tax in Hong Kong. I know school's out and you're bored, but really...

[nivek2046]

The vast majority of those companies are incorporated in the mainland and pay little to no tax in Hong Kong. I know school's out and you're bored, but really...

Interesting. I thought this is the case:

Generally speaking, a company is liable to profits tax if it carries on a trade, profession or business in Hong Kong and has profits arising in or derived from Hong Kong from such trade, profession or business. This applies equally to Hong Kong companies and those incorporated overseas.

https://www.hklii.org/en/legis/ord/112/s14

[PLamHK]

It is the case, and the vast majority of the companies you listed carry out a zero to minimal proportion of their business in Hong Kong.

I have to ask: are you actually a real person, or some sort of bot with the mental age of 12?

[aw451]

would these companies move to other jurisdictions if Hong Kong's profit tax goes up?

https://www.tradingview.com/markets/...est-employers/

These are companies primarily or dual listed in HK, not HK companies. Mainland companies list in HK due to the free flow of capital.

[nivek2046]

I was thinking of the largest 10 employers in HK (ie running business in HK). I don't know why the list is not showing:

https://www.financecharts.com/screen...Interest%20Cov.