Report proposing the introduction of a regional headquarter tax incentive in Hong Kong
KPMG’s latest report proposes the introduction of a regional headquarter (RHQ) tax incentive in Hong Kong. The report also highlights the key locations in the Asia Pacific region that have been successful in attracting multinational corporations (MNCs) to establish RHQs, and the factors that have led to their success.
The key aspects of the Report are as follows:
Tax efficiency and simplicity are key parts of the decision making process of an MNC when it is deciding on where to establish its RHQ. Introducing an RHQ tax incentive in Hong Kong is a necessary step to ensure that Hong Kong retains its position as a leading financial services hub and as an attractive RHQ location. As such, in order for Hong Kong to be competitive and a viable alternative to other locations with longstanding RHQ tax incentives, Hong Kong needs to introduce its own version of an RHQ tax incentive in order to encourage MNCs to establish RHQs in Hong Kong.
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