Hong Kong – While tax incentives for treasury centers are
not offered and double tax treaty network is limited, companies
are attracted to Hong Kong’s territorial taxation regime
characterized by a low corporate income tax rate, waiver of
tax on interest income, and lack of withholding tax on interest
payment. Hong Kong is also favored as a treasury center
location due to its dynamic financial sector and superior
physical and technological infrastructure. Hong Kong’s status
as an offshore RMB hub and close proximity to China make it
an ideal location for companies that have or are planning to
establish business operations in the mainland.