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The Economy
Tax Treaties and International Tax Cooperation
Comprehensive double taxation agreements (CDTAs) with major economies improve the business environment and facilitate the flow of trade, investment and talent between Hong Kong and the rest of the world. These agreements reduce tax burdens on individuals and enterprises and eliminate uncertainties over tax liabilities. Hong Kong had signed 38 CDTAs as at end-2017, as well as tax information exchange agreements with seven other jurisdictions.
Hong Kong has in place a legal framework to implement the Organisation for Economic Cooperation and Development's (OECD) new global standard on automatic exchange of financial account information on tax matters to enhance tax transparency and combat cross- border tax evasion. The first exchanges will start in 2018.
Hong Kong has committed to carrying out the Base Erosion and Profit Shifting (BEPS) package promulgated by the OECD. The government is working on an amendment bill to codify the transfer pricing principles into the Inland Revenue Ordinance and implement the minimum standards of the BEPS package.
Hong Kong is working towards executing the Multilateral Convention on Mutual Administrative Assistance in Tax Matters so as to implement international tax cooperation initiatives more effectively on a multilateral basis.
Government Procurement
Hong Kong, China is a signatory to the Agreement on Government Procurement of the World Trade Organisation (WTO GPA). Government procurement is undertaken on the principles of public accountability, value for money, transparency, and maintaining open and fair competition.
The Government Logistics Department is the government's procurement agent for many goods and related services. Open tendering is normally adopted to meet departments' procurement needs at the best value for money, with due regard to the lifetime cost, environmental considerations and stability of supply. Restricted or single tender procedures may be used under exceptional circumstances. In 2017, the department awarded contracts amounting to $4.21 billion, procuring goods and related services from 22 countries or territories, including Hong Kong.
The department maintains supplier lists for different categories of goods and services to facilitate sourcing. It publishes tender notices online and notifies suppliers on the relevant supplier lists for open tenders. Tender notices for procurements covered by the WTO GPA are also published in the Government Gazette. Consulates and overseas trade commissions are informed where appropriate. Bidders may download tender documents and submit offers online.
Websites
Office of the Government Economist, Financial Secretary's Office: www.oge.gov.hk Financial Services and the Treasury Bureau (The Treasury Branch): www.fstb.gov.hk/tb/en Government Logistics Department: www.gld.gov.hk
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