Proximity to China
One of the primary advantages which is inherent to Hong Kong’s financial sector is its proximity to China, the largest market in the world. Many who work in Hong Kong’s financial sector have used its ties to China as a method to gain a foothold within this most lucrative of markets. This access to China’s massive population has been a tremendous boon to all who work within Hong Kong as it allows the financial companies to maximize the profit earned through these companies.
Hong Kong has also been open to input contributed by foreigners, including foreign business owners. Hong Kong does not have a large population; thus, it requires as much assistance as possible from any source, whether that source be local or foreign. The contributions of foreigners have caused Hong Kong’s financial sector to not only become one which is thriving and respected the world over, but also one which is cosmopolitan, diverse, and welcoming of people of any background. This therefore encourages more people from around the world to enter Hong Kong’s financial sector.
Low Personal and Corporate Taxes
The low tax rate of Hong Kong is another of the advantages. The personal and corporate tax rates of Hong Kong are much lower than most other tax rates around the world. Therefore, people who work in other countries’ financial sectors, as is the case with many other people who have chosen to live and work in Hong Kong, have made the decision to relocate there in order to save money on taxes to be paid. Hong Kong’s personal tax rates range from 2% to 17%, while its standard corporate tax rate is 16.5%.
Hong Kong’s tax system might be difficult to fully understand for someone who does not grasp the nuances and details which make it what it is. Should you happen to require assistance in this area, we at Paul Hype Page & Co are always ready to be of service to you. Our tax experts will assist you in order to provide you with a deeper understanding of all matters related to taxation in Hong Kong. We will also make suggestions about how you might reduce your tax burden as a Hong Kong taxpayer, should you desire such suggestions.
Well Regulated Industry
One other advantage is the high level of regulation which takes place within the financial sector. The government of Hong Kong has done much to ensure that all actions within Hong Kong’s financial sector are ethical, legal, and devoid of any foul play or suspicion of such. There are severe punishments which are imposed on anyone or any company found to be in violation of the laws governing the financial sector of Hong Kong. These laws and regulations have served to strengthen the sector, enhance its reputation on the global stage, and facilitate the development and growth of finance in Hong Kong.