Why Hong Kong
Hong Kong is a unique corporate and trust services choice because it is at once a global financial centre, an offshore tax haven and the only true gateway between the East and the West.
Tax Regime Comparable to Offshore Jurisdictions
Hong Kong offers a tax regime that is comparable to offshore jurisdictions, such as the Cayman Islands. Its tax system is schedular, meaning that tax is levied on all specific types of income. There is no general income tax. For profits tax, the tax applies only where the taxpayer carries on a trade, profession or business in Hong Kong and the profits arise in or derive from Hong Kong from that business. There are no capital gains taxes. There are no dividend taxes. There are no withholding taxes.
Legal System of a Global Financial Centre
Hong Kong offers a legal system that is comparable with other global financial centres, such as New York or London. As with New York and London, the legal system is rooted in the English common law, the judiciary is independent from the executive and legislative branches of government and judges are drawn from the ranks of well respected members of the legal profession. Judges at the Court of Final Appeal, the highest court in Hong Kong, are drawn not only from Hong Kong but from leading common law jurisdictions, including the United Kingdom, Canada and Australia. Unlike mainland China, judges need not be members of the Chinese Communist Party and are beholden neither to the executive branch of government nor any particular party.
Global Financial Centre Connectivity and Talent Pool
Unlike offshore tax jurisdictions, Hong Kong is a true global financial centre. Capital moves freely in and out of Hong Kong. Hong Kong has the highest concentration of banking institutions in the world.
Hong Kong has a deep pool of professional investment management and investment advisory talent to service high and ultra-high net worth individuals and families. Law firms from around the world maintain offices in Hong Kong, with the result that multinationals and families alike have easy access to corporate, tax, trust, family or succession law advice that may be required to meet their objectives.
Hong Kong has world class infrastructure. Its airport is one of the world's busiest. It enjoys reliable and secure internet connectivity.
Unique Juxtaposition between East and West
Perhaps most compelling, Hong Kong sits between the emerging economic superpower of the East that is China and the economic superpowers of the West that are the United States and the European Union. As geopolitical tensions rise, given the significant and substantial ties both sides have to Hong Kong, Hong Kong is the only viable corporate and trust services centre that will survive any contest between East and West.