Hong Kong: Public consultation on proposal to enhance tax concession regime for corporate treasury centers
Legislative amendments for implementing proposal expected in first half of 2027.
The government has launched a public consultation on a proposal to enhance the tax concession regime for corporate treasury centers (CTCs).
The proposal would introduce a two-tiered regime:
- The Tier 1 regime would provide all qualifying CTCs (QCTCs) with enhanced tax deductions for interest expenses and includes certain clarifications.
- The Tier 2 regime would further exempt pre-approved QCTCs from various requirements under the existing regime.
The government aims to (1) issue administrative clarifications for enhancing the existing tax concession regime for CTCs within 2026, and (2) introduce the legislative amendments for implementing the two-tiered regime into the Legislative Council in the first half of 2027.
Read a July 2026 report prepared by the KPMG member firm in Hong Kong