International co-operation never stops

The three-day 5th Belt and Road Initiative Tax Administration Cooperation Forum (BRITACOF) concluded successfully on 26 September.  I am delighted to see this annual mega event for the international tax community coming to Hong Kong for the very first time, highlighting our unique gateway role in fostering partnerships and creating value for economies, businesses and people along the Belt and Road (B&R).

Tax administration plays a crucial role in the sustainable development of an economy.  Tax revenue can provide a stable source of income for a government to support public services and infrastructure construction, as well as to promote social and economic development.  Besides, a fair and transparent tax regime can foster trust among investors, governments and taxpayers.  With economic globalisation and business practices constantly evolving, economies must deepen co-operation in tax administration and work together to build a tax-friendly environment.  Hong Kong’s tax regime, which is internationally recognised for its clarity, efficiency and compliance with international standards, has created a favourable environment for businesses.  As an advocate of free and multilateral trade, Hong Kong has all along been supporting and actively participating in tax co-operation on a global scale.

The Secretary for Financial Services and the Treasury, Mr Christopher Hui, delivers welcoming remarks at the at the 5th Belt and Road Initiative Tax Administration Cooperation Forum welcome dinner.

Being a responsible member of the international community, we remain committed to upholding international tax standards, including the Base Erosion and Profit Shifting framework as well as the standard of tax information exchange set by the Organisation for Economic Co-operation and Development.  This reflects not only the importance Hong Kong attaches to international tax co-operation, but also our unfaltering determination to enhance tax transparency and combat cross-border tax evasion. Hong Kong will continue to offer a fair and transparent tax environment with a low and simple tax regime, so as to bolster the confidence of enterprises and investors and to safeguard our reputation and competitiveness as an international financial and trading centre.

This year’s BRITACOF attracted a big audience of some 500 tax officials, tax experts, as well as representatives from international organisations, academic institutions and enterprises from nearly 50 B&R countries and regions.  Under the theme of “Deepening Tax Administration Cooperation for High-Quality Belt and Road Development”, the Forum saw participants engaging in in-depth discussions on various complex tax administration issues to actively explore strategies for innovative solution under a highly interactive atmosphere.

The Commissioner of the State Taxation Administration, Mr Hu Jinglin, said in his keynote speech at the Forum’s opening ceremony that differences in tax systems and collection management among countries had an important impact on the liberalisation and facilitation of cross-border trade and investment.  He also mentioned the great significance of deepening tax administration co-operation in removing barriers to cross-border trade and investment, promoting inclusive growth of the global economy, and facilitating high-quality B&R development.

During the Forum, I had bilateral meetings separately with representatives from Kazakhstan, the Maldives, Tajikistan and Türkiye to discuss deepening tax co-operation at both international and B&R levels.  Besides, I also signed a comprehensive avoidance of double taxation agreement (CDTA) with the Commissioner of the Turkish Revenue Administration, Mr Bekir Bayrakdar, on behalf of the two governments.  This is the 51st CDTA signed by Hong Kong.  By setting out clearly the allocation of taxing rights between the contracting jurisdictions, a CDTA helps enhance the clarity and predictability of tax liabilities arising from cross-border activities and reduces double taxation, thereby relieving individual and corporate tax liabilities while benefiting bilateral trade and investment.  Therefore, having an extensive network of CDTAs will make Hong Kong more attractive as a business and investment hub.  In this connection, we are currently negotiating with 16 tax jurisdictions and stepping up efforts to expand our CDTA network, particularly into those tax jurisdictions participating in the B&R Initiative.

The Secretary for Financial Services and the Treasury, Mr Christopher Hui (right), and the Commissioner of the Turkish Revenue Administration, Mr Bekir Bayrakdar (left), sign a comprehensive avoidance of double taxation agreement.

During the Forum, I had bilateral meetings separately with representatives from Kazakhstan, the Maldives, Tajikistan and Türkiye to discuss deepening tax co-operation at both international and B&R levels.  Besides, I also signed a comprehensive avoidance of double taxation agreement (CDTA) with the Commissioner of the Turkish Revenue Administration, Mr Bekir Bayrakdar, on behalf of the two governments.  This is the 51st CDTA signed by Hong Kong.  By setting out clearly the allocation of taxing rights between the contracting jurisdictions, a CDTA helps enhance the clarity and predictability of tax liabilities arising from cross-border activities and reduces double taxation, thereby relieving individual and corporate tax liabilities while benefiting bilateral trade and investment.  Therefore, having an extensive network of CDTAs will make Hong Kong more attractive as a business and investment hub.  In this connection, we are currently negotiating with 16 tax jurisdictions and stepping up efforts to expand our CDTA network, particularly into those tax jurisdictions participating in the B&R Initiative.

As the old saying goes, “it is always a pleasure to have friends from afar”.  Being the host of BRITACOF, Hong Kong should of course show its hospitality to the VIPs participating in this mega event by giving them a warm reception, introducing our distinctive attractions and unique East-meets-West culture, as well as telling the good stories of the city.  At the welcome dinner, I enjoyed a lion dance and a face-changing performance together with other participants.  What’s more, I took them to the Hong Kong Palace Museum and M+ (which is Asia’s first global museum of contemporary visual culture), a ride on the Ngong Ping 360 ropeway to catch a glimpse of the city’s verdant countryside, and a cruise around the Victoria Harbour to admire our stunning skyline.  I believe that they all have experienced the unique charm of Hong Kong as a vibrant city.

Participants of the 5th Belt and Road Initiative Tax Administration Cooperation Forum enjoy performance at the welcome dinner.

The Forum would not have been a success without the professionalism of and staunch support from our partner organisations, as well as the active participation of our friends from all over the world.  May I take this opportunity to extend my heartfelt gratitude to all of them.  I hope that the trip to Hong Kong has been a fruitful and memorable one for each of the participants.  Looking ahead, the sixth and seventh editions of BRITACOF will take place in Nepal and Indonesia in 2025 and 2026 respectively.  I wish the two upcoming events every success, and hope that all parties will continue to deepen international tax co-operation and pursue high-quality B&R development together!