Hong Kong considers tax rebates for overseas, mainland firms in Northern Metropolis Hong Kong could offer tax rebates to mainland Chinese and overseas companies that it wants to attract to the Northen Metropolis, according to the finance chief, as the city pushes to accelerate the development of the megaproject. Financial Secretary Paul Chan Mo-po also said on Friday that the industry park companies set up to run the Northern Metropolis should also make use of market resources, such as bond issuance, instead of relying solely on government funding. “Our tax rates are low and very competitive. There is also an international trend that opposes the use of [low] taxation to compete for investment and considers that unfair and may not be accepted by the international community,” Chan said. “When attracting industries, even when we have levied the tax, we could rebate it in different ways. It’s an option, and we must be flexible and creative,” he added. The Northern Metropolis project, first announced in 2021, aims to turn 30,000 hectares (74,132 acres) of land close to the mainland border into an engine for economic growth and a housing hub. The mega infrastructure project is expected to be run by one or more park companies, statutory or non-statutory, which will focus on attracting four types of businesses: artificial intelligence, life and health technology, new energy, and financial technology. Chan said that the government would first secure funding approval from the Legislative Council, then pass it on to the park companies, which would operate under the management of their boards of directors. But he added that the companies should not rely solely on such funding from the government. “If their projects are good, they could issue bonds or borrow from banks, or come up with innovative ways of public-private partnerships. This is to use some of their resources to leverage for more resources,” Chan said. City leader John Lee Ka-chiu said in his policy address on Wednesday that the Northern Metropolis would have its own set of laws designed to speed up its development, with statutory procedures simplified and some funding approvals allowed to bypass the legislature. https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3326138/hong-kong-considers-tax-rebates-overseas-mainland-firms-northern-metropolis (ICE HONG KONG)

Fonte notizia: South China Morning Post