KPMG Welcomes Hong Kong's Tax-related and Talent Policies: A Step in the Right Direction
HONG KONG SAR - Media OutReach - 30 October 2023 - KPMG welcomes the recent tax-related policy measures and talent retention policies announced in the Policy Address. These initiatives mark a significant step forward in addressing key challenges faced by the city.
In response to the current residential property market and economic conditions in Hong Kong, the government has adjusted the demand-side management measures for residential properties. Notably, this includes a reduction in the rates of both the Buyer's Stamp Duty and the New Residential Stamp Duty from 15% to 7.5%, effectively lowering transaction costs for homebuyers. Ivy Cheung, Regional Senior Partner in Hong Kong SAR, KPMG, said, "We agree with the government's decision and believe that continued monitoring of the property market is necessary to ensure its healthy and stable development."
The Capital Investment Entrant Scheme will enable eligible investors who invest HK$30 million or more in assets such as stocks, funds, and bonds to apply for entry into Hong Kong. Ivy Cheung further added, "Considering the minimum asset threshold of HK$240 million under the family office tax regime, this threshold is not high, and ultra-high net worth (UHNW) families should not face difficulties meeting the requirement. The Scheme, along with the family office tax regime effective from the 2022/23 tax year, will contribute to the development of family office businesses in Hong Kong and enhance its status as an international asset management centre. We look forward to the announcement of the further details of the Scheme by the end of this year."
Commenting on the talent initiatives, Ivy Cheung said: "The introduction of the Multiple-entry Visa to the Mainland for Foreigners Working in Companies Registered in Hong Kong is highly welcomed as it aligns well with the goal of attracting overseas companies to set up operations in Hong Kong. The ability for foreign executives to have easy access to the Mainland through multiple-entry visas will give Hong Kong an advantage over other jurisdictions. The administrative friction that often accompanies frequent travel to the Mainland will be alleviated, making Hong Kong an attractive destination for companies and talents alike."
Regarding the Talent List coverage, she commented: "The Talent List currently covers a wide range of professions and industry segments, and we suggest including accountants in the list. Additionally, streamlining the application approval processes will support the smooth movement of talent into Hong Kong."
These policies implemented by the Hong Kong government are steps in the right direction to address the talent shortage. By continuously evaluating and refining these policies, KPMG believes that Hong Kong could remain competitive and attractive to professionals from various fields, thereby bolstering its position as a global hub for professionals.
With the strong support of Chinese Mainland and the close connection to the world, Hong Kong should capitalize its strength as the only world-class city that can benefit from both Chinese Mainland and the rest of the world.
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About KPMG China
KPMG China has offices located in 31 cities with over 15,000 partners and staff, in Beijing, Changchun, Changsha, Chengdu, Chongqing, Dalian, Dongguan, Foshan, Fuzhou, Guangzhou, Haikou, Hangzhou, Hefei, Jinan, Nanjing, Nantong, Ningbo, Qingdao, Shanghai, Shenyang, Shenzhen, Suzhou, Taiyuan, Tianjin, Wuhan, Wuxi, Xiamen, Xi'an, Zhengzhou, Hong Kong SAR and Macau SAR. Working collaboratively across all these offices, KPMG China can deploy experienced professionals efficiently, wherever our client is located.
KPMG is a global organization of independent professional services firms providing Audit, Tax and Advisory services. KPMG is the brand under which the member firms of KPMG International Limited ("KPMG International") operate and provide professional services. "KPMG" is used to refer to individual member firms within the KPMG organization or to one or more member firms collectively.
KPMG firms operate in 143 countries and territories with more than 265,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. Each KPMG member firm is responsible for its own obligations and liabilities.
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In 1992, KPMG became the first international accounting network to be granted a joint venture licence in the Chinese Mainland. KPMG was also the first among the Big Four in the Chinese Mainland to convert from a joint venture to a special general partnership, as of 1 August 2012. Additionally, the Hong Kong firm can trace its origins to 1945. This early commitment to this market, together with an unwavering focus on quality, has been the foundation for accumulated industry experience, and is reflected in KPMG's appointment for multidisciplinary services (including audit, tax and advisory) by some of China's most prestigious companies.
