Potential Tax Treaty Partners for Hong Kong

8 March 2024 Mr Stephen Lo  Principal Assistant Secretary for Financial Services & the Treasury (Treasury)(R2) Financial Services and the Treasury Bureau 24/F, Central Government Offices 2 Tim Mei Avenue, Tamar  Hong Kong          Dear Mr Lo,

Potential Tax Treaty Partners for Hong Kong    

Thank you for your letter of 14 February 2024 inviting the Hong Kong General Chamber of Commerce to provide suggestions on prospective jurisdictions that Hong Kong should actively pursue Comprehensive Avoidance of Double Taxation Agreements.  The Chamber firmly believes in the critical importance of expanding Hong Kong’s treaty network, as it directly and significantly affects our appeal as preferred destination for international business to carry out their operations. We hold high hopes that substantive progress can be achieved in the near term by actively engaging the jurisdictions as set out on the attached list. Additionally, we highly recommend that the Government allocate additional resources to expedite the process.  We hope you will find our recommendations useful. Yours sincerely,  Patrick Yeung  CEO Encl.  

Proposed CDTA partners to be accorded with priority  

 Jurisdiction

 Reasons

 Australasia

 Australia

 -    Hong Kong’s 21

st

largest trading partner (2023),

 -    APEC member,

 -    Free Trade Agreement with Hong Kong, 

 -    Major commodities/natural resources player that is of interest to Mainland investors.

 Asia

 The Philippines

 -    Hong Kong’s 14

th

largest trading partner (

2023

),

 -    Belt and Road economy,

 -    APEC member,

 -    Free Trade Agreement with Hong Kong.

 Myanmar

 -    Belt and Road economy,

 -    Free Trade Agreement with Hong Kong.

 Sri Lanka

 -    Belt and Road economy.

 Azerbaijan

 -    Belt and Road economy.

 Americas

 Chile

 -    Hong Kong’s 3

rd

largest trading partner in Latin America (2023),

 -    APEC member,

 -    Fulfilment of

an agreement in principle reached in October 2019

, 

 -    Free Trade Agreement with Hong Kong.

 Colombia

 -    Hong Kong’s 4

th

largest export market in Latin America (2023).

 Africa

 Egypt

 -    Belt and Road economy,

 -    Key market for investors in Africa.

 Cameroon

 -    Belt and Road economy,

 -    Key market for investors in Africa.

 Europe

 Poland

 -    Belt and Road economy.