Hong Kong is preparing a preferential tax regime aimed at attracting industry and investment, according to remarks made by Secretary for Financial Services and the Treasury Christopher Hui at a Legislative Council Panel on Financial Affairs meeting. Under the 2026 Policy Address, the government plans to submit amendment legislation by the end of this year to establish the framework.
The proposed regime would cover companies engaged in priority sectors including advanced manufacturing, innovation and technology research and development, headquarters activities, logistics and supply chain management, and financial services. Companies whose investment plans and substantive contribution to Hong Kong’s economy meet the required conditions may be approved for concessionary tax rates of 5% or 8.25%, described as a half-rate arrangement, for up to five years.
Both newly established companies in Hong Kong and firms already operating in the city would be able to apply by submitting business plans through Invest Hong Kong and the Office for Attracting Strategic Enterprises. Applications would be reviewed by the Steering Committee on Promoting Attracting Companies and Investment, led by the Financial Secretary. The government said it aims to table the amendment bill in December and implement the tax regime in the 2027/28 year of assessment, according to a Hong Kong government press release cited by Techub.
Hong Kong plans to introduce a preferential tax regime for companies in priority industries, with eligible firms able to receive concessionary tax rates of 5% or 8.25% for as long as five years.
According to Techub, Secretary for Financial Services and the Treasury Christopher Hui outlined the industry and investment incentive package at a meeting of the Legislative Council Panel on Financial Affairs. Under the 2026 Policy Address, the Hong Kong government will submit an amendment bill by the end of this year to establish the tax regime.
The proposed framework is aimed at companies engaged in advanced manufacturing, innovation and technology research and development, headquarters activities, logistics and supply chain management, and financial services.
If a company’s investment plan and its substantive contribution to Hong Kong’s economy meet the required conditions, it may be approved for a preferential rate of 5% or 8.25%, described in the announcement as a half-rate tax arrangement. The maximum qualifying period would be five years.
Both newly established companies in Hong Kong and businesses already operating there would be allowed to submit business plans through Invest Hong Kong and the Office for Attracting Strategic Enterprises.
Applications would be reviewed by the Steering Committee on Promoting Attracting Companies and Investment, led by the Financial Secretary. The government plans to submit the amendment bill to the Legislative Council in December, with the goal of putting the regime in place for the 2027/28 year of assessment. The report cited a Hong Kong government press release.
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