Hong Kong 5-year plan should have Northern Metropolis tax breaks, listing reforms: HKICPA

Accounting body also urges government to lobby mainland Chinese authorities about tax on cross-border trusts and insurance policies

The Hong Kong Institute of Certified Public Accountants (HKICPA) has urged the government to introduce tax incentives to help develop the Northern Metropolis and to improve the stock exchange’s listing regime to further cement the city’s role in international finance.

“Many start-ups need long-term investment and would lose a lot of money before they can make a profit,” Law said. “As such, the tax incentives should be designed in a way that allows the investors who back these start-ups to use losses in these investments to offset their other profits.”

The Northern Metropolis project aims to turn 30,000 hectares (74,132 acres) of land near the border with mainland China into a technological and economic hub. The HKICPA also suggested that the government could offer lower tax rates for people who work in the area, Law said.

Hong Kong will unveil its first-ever five-year plan in September, aligning the city’s priorities with the nation’s 2026-2030 development blueprint.