Hong Kong tax revenue could expand by US$1.28 billion under global minimum levy for corporations, official says
- Several hundred large multinational companies will be affected by the new tax rule, Commissioner of Inland Revenue says
- Tam Pai-pang said the government will put forward a new law to implement the tax, agreed upon by nearly 140 jurisdictions worldwide, next year
The Hong Kong government could take in about HK$10 billion (US$1.28 billion) in additional tax revenue per year once it implements a new 15 per cent global minimum tax for large multinational companies, according to Hong Kong’s tax office head.
Several hundred large multinational companies will be liable under the new regime, Commissioner of Inland Revenue Tam Tai-pang told lawmakers in a Legislative Council financial affairs panel meeting on Monday.
“Based on these several hundred companies’ existing business records, it is estimated that the government could collect an extra HK$10 billion in tax income,” Tam said.
Nearly 140 countries and jurisdictions including Hong Kong agreed to impose the tax in a landmark deal in 2021 to cut down on corporate use of tax havens to escape tax liabilities. Tam said the Hong Kong government will seek lawmakers’ approval for a new law to implement the regime in the city starting next year.
The government issued a consultation paper in December to collect views until March 20 on the implementation details.
