Foreign business owners often choose Hong Kong for the purposes of expanding their businesses in the Asia-Pacific region. Some of the reasons for this include the ease of setting up and operating a business in Hong Kong as well as its proximity to the Chinese market which offers a large base of consumers, thus increasing the demand for their goods and services. However, probably the primary factor which attract business owners to Hong Kong is its highly attractive taxation system. There are low personal and corporate tax rates with no capital gains in Hong Kong. In Hong Kong, there is also no withholding tax on interest and dividends. Thus, these tax advantages have served to draw many a foreign business owner to Hong Kong.