Feedback on the Public Consultation for Implementing Global Minimum Tax and Minimum Top-Up Tax in Hong Kong
Release Date: 2024-02-18
Hong Kong, 2 Tamar Street
Government Headquarters, 24th Floor
Email: beps@fstb.gov.hk
Financial Services and the Treasury Bureau, Treasury Branch
To: Treasury Branch, Financial Services and the Treasury Bureau
Subject: Feedback on the Public Consultation for Implementing Global Minimum Tax and Minimum Top-Up Tax in Hong Kong
In relation to the document titled "Consultation on the Implementation of Global Minimum Tax and Minimum Top-Up Tax in Hong Kong" (referred to as the "Consultation Document"), our association wishes to state our position without addressing each point individually.
We believe that imposing a standardized global minimum tax rate, akin to restricting market competition, is inappropriate. It is unjustifiable for foreign governments, which lack their own competitive edge, to criticize lower tax rates in other jurisdictions and demand the enforcement of a minimum top-up tax. Such actions are essentially an exercise of hegemonism that threatens Hong Kong’s competitive standing. Should the Hong Kong government deem participation in the "implementation of global minimum tax and minimum top-up tax" necessary, we strongly recommend reinstating the "minimum commission system," which has been a cornerstone of the securities industry for over two decades.
If you have any questions regarding this letter, please feel free to contact me at (phone: / email: ).
Mofiz Chan
Chairman
Hong Kong Securities and Futures Professionals Association
Government Headquarters, 24th Floor
Email: beps@fstb.gov.hk
Financial Services and the Treasury Bureau, Treasury Branch
To: Treasury Branch, Financial Services and the Treasury Bureau
Subject: Feedback on the Public Consultation for Implementing Global Minimum Tax and Minimum Top-Up Tax in Hong Kong
In relation to the document titled "Consultation on the Implementation of Global Minimum Tax and Minimum Top-Up Tax in Hong Kong" (referred to as the "Consultation Document"), our association wishes to state our position without addressing each point individually.
We believe that imposing a standardized global minimum tax rate, akin to restricting market competition, is inappropriate. It is unjustifiable for foreign governments, which lack their own competitive edge, to criticize lower tax rates in other jurisdictions and demand the enforcement of a minimum top-up tax. Such actions are essentially an exercise of hegemonism that threatens Hong Kong’s competitive standing. Should the Hong Kong government deem participation in the "implementation of global minimum tax and minimum top-up tax" necessary, we strongly recommend reinstating the "minimum commission system," which has been a cornerstone of the securities industry for over two decades.
If you have any questions regarding this letter, please feel free to contact me at (phone: / email: ).
Mofiz Chan
Chairman
Hong Kong Securities and Futures Professionals Association