Dear Valued Customers,
Welcome to our December newsletter! What a remarkable year it has been with the pandemic affecting international travel and commerce. Yet, the decision to open our newest office, 3E Accounting Limited in Hong Kong this year has proved to be a fruitful one. December is shaping up to be as busy as the last few months! Let’s look at what’s happening.
Mitigating the Pandemic with The World’s Largest GDP Trade Pact
The Regional Comprehensive Economic Partnership (RCEP) trade pact covers a third of the global economy. China and 14 other partner countries have signed on. This has made it the world’s largest trade pact in relation to Gross Domestic Product (GDP). RCEP represents the best chance for its ten ASEAN country members as well as Australia, China, Japan, New Zealand and South Korea to revive and reinvigorate their economies and promote positive growth.
An “Advisory” Way to Boost Hong Kong’s Financial and Commercial Status
Two advisory bodies have been established to ramp up Hong Kong’s financial and commercial status. These are the Governance Committee and Investment Committee. The committees were established as part of Hong Kong’s strategic plan to aid the city’s portfolio growth. The Governance Committee comprised six non-official members from technology, banking and commerce. The committee will be chaired by the Financial Secretary, who will be serving a two-year term. They will be tasked with handling the portfolio development, which consisted of the 10% of HK$224.5 billion from the Future Fund that the Government has set aside for investment purposes.
Expanding Horizons with Georgia via A Tax Treaty
Hong Kong and Georgia will be expanding their network through a tax treaty agreement. Georgia will be a new addition to the city’s already extensive tax treaty network.
Why Georgia? This is because Georgia is an active Belt and Road participant. Plus, situated between Europe and Central Asia, Georgia is in a very strategic location and a strong trade partner. With the agreement, any tax paid in Georgia by Hong Kong companies will be utilized as a credit against payable tax in Hong Kong on the same income. The same concept applied to Georgian companies based in Hong Kong, where any tax paid in Hong Kong will be permitted as a deduction from tax payable on the same income in Georgia. Therefore, with a comprehensive double tax avoidance agreement in place, the city becomes a more attractive investment hub.
Finding Your Business Success in Hong Kong
Expanding a business abroad is always a daunting thought. But if you do it right, success is possible and rewarding. Forming alliances is crucial for your business expansion in Hong Kong because the prospective partner has potential customers that you can tap on. You can exchange value by introducing something new to that prospective partner. Add new products and services that are in demand and profitable.
Finally, with the advancement of technology and international opportunities, growing your web content will play a vital role in your business expansion in Hong Kong. I hope that these tips will be helpful when planning your business expansion into Hong Kong.
That’s all from us here at 3E Accounting. I look forward to catching up with you again next year! Let’s see what 2021 has in store for us.
Founder, 3E Accounting Group
Read More in our E-Newsletter December 2020