Hong Kong has Friendliest Tax Regime in the Region
April 4, 2009
According to the 2009 Tax Misery and Reform Index, Hong Kong was ranked as the friendliest tax regime in the Asia-Pacific region and the third in the world.
The annual index was done by business magazine, Forbes Asia, by comparing 50 jurisdictions around the world. The score was calculated based on the sum of the corporate, personal, social security and sales tax rates. Tax policies are vital to economic growth because it affects how talent is retained and dictates the flow of capital.
The special administrative region ranked the highest in Asia with a score of 41.5 because of its low corporate tax at 16.5 percent, personal income tax at 15 percent and employer and employee social security levy at 5.0 percent each.
Taiwan followed next as the region’s second-most friendly with a score of 75. “This year, most Asian jurisdictions continue to have (a) more tax-friendly environment compared with other parts of the world,” Forbes said in a press statement.
China and Japan were ranked as having the two harshest tax regimes in the region.
China’s score increased by seven points to 159 compared to last year because of higher employer and employee social security taxes. China also levied a 25 percent tax on corporate income, 45 percent on personal income, 49 percent for employers’ social security, 23 percent for employees social security and a 17 percent tax on goods and services.
The rise in employer and employee social security taxes were implemented to aid workers hit by the global slowdown.
Forbes added:”The survey shows that outside of China and Japan, the rest of Asia continues to enjoy stable, low tax advantage.”
Source: Forbes & China Briefing
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China to cut taxes to zero and boost weak exports
March 11, 2009
China to cut taxes to zero and boost weak exports
By Jamil Anderlini in Beijing Source: Financial Times
Published: March 10 2009 02:00 | Last updated: March 10 2009 02:00
China will reduce export taxes to zero and give more financial support to exporters as it tries to increase its share of global trade in the current crisis, the country’s commerce minister announced on Monday.
China would “use all possible measures to ensure the stable growth of our exports and prevent a large drop in external demand”, Chen Deming said in an interview published by a Communist party newspaper.
“We should increase our share of the global market . . . We must transform ourselves from a big export nation to a strong export nation,” he continued… ( the rest of article at FT)
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