Hong Kong is a well-known international financial center that has ranked no. 1 in the world economic freedom index for 17 consecutive years up to 2011.
Hong Kong, as one of the world’s most competitive financial and business centers, demonstrated a high degree of resilience during the global financial crisis. Effective legal and regulatory framework and openness to global commerce strongly supports entrepreneurial dynamism and attracts financial institutions from the rest of the world to conduct businesses here. Financial products are innovative and fees are competitive.
Hong Kong’s effective tax rates are among the lowest in the world. There is no capital gain or dividend tax. Individuals are taxed either progressively from 2%~17%, or at a flat rate of 15% on personal income. The top corporate income tax rate is 16.5%. For 12 consecutive years, Hong Kong has been Asia’s second largest destination for foreign direct investment, trailing only mainland China. The economic interaction with China has become more intense and sophisticated.