Hong Kong remains one of the world’s most dynamic financial centers, serving as a strategic link between China and international markets. Its stable legal system, openness to foreign capital, and privileged geographical position consolidate its appeal for European companies seeking growth in the Asia-Pacific region.
In recent years, the territory has intensified regional cooperation with ASEAN and the People’s Republic of China, reinforcing its role as a global financial node.
Economic and regulatory context
The Hong Kong government is adapting its tax regime to international standards, particularly regarding transfer pricing, transparency, and tax cooperation.
Key measures include the implementation of new guidelines aligned with OECD standards. The creation of incentives to attract responsible foreign investment is also a central part of the national program.
These reforms aim to maintain the competitiveness of the local tax regime and reinforce Hong Kong’s reputation as a modern and secure jurisdiction for international business.
Fiscal and accounting keys for foreign companies
- Transfer Pricing: European subsidiaries must document transactions with related parties in accordance with OECD standards.
- Transparency and Reporting: requirements for automatic exchange of tax information and local documentation have been strengthened.
- Investment Incentives: Hong Kong offers preferential tax regimes in strategic sectors such as finance, innovation, and professional services.
- Tax Rate: Corporate Income Tax (CIT) remains competitive, with a maximum rate of 16.5% and partial exemptions for specific activities.
Auxadi can support you in international tax and accounting planning, ensuring compliance with transfer pricing regulations, the correct application of incentives, and consistency between local operations and consolidated financial statements.
Through our global platform (MySPV) and specialized team, we help business groups operate in Hong Kong by integrating tax, accounting, and payroll management into a single, centralized solution.
At Auxadi, we offer comprehensive services in accounting, tax, payroll, transfer pricing and corporate legal services to multinationals and funds. With experience since 1979 and a presence in over 50 countries, including 26 proprietary subsidiaries, our advanced technological platform and proven methodology enable us to guarantee efficient management in compliance with local regulations.
Author:
Alba González
Account Manager – ES
Can Auxadi help?
Auxadi can become your ideal partner. We offer a one stop shop value added outsourcing services in the areas of accounting and reporting, tax compliance, payroll management and representation services, among others.
Local Knowledge – International Coverage
Founded in 1979, Auxadi is a family-owned business working for multinational corporations, private equity funds and real estate funds. It’s the leading firm in international accounting, tax compliance, payroll, transfer pricing, and corporate legal services management connecting Europe and the Americas with the rest of the world, offering services in 50 countries. Its client list includes many of the top 100 PERE companies. Headquartered in Madrid, with offices in US and further 26 international subsidiaries, Auxadi serves 1,500+ SPVs across 50 jurisdictions.
All information contained in this publication is up to date on 2024. This content has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice.No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this content, and, to the extent permitted by law, AUXADI does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.