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FOREWORD

Hong Kong is well known as one of the main business and trading hubs in Asia. It has been a Special Administrative Region (SAR) of the People’s Republic of China since July 1st 1997, when control of the territory was reverted from Britain to China. While Hong Kong is a part of China, it retains its own legislature, legal and judicial systems and full economic autonomy, including its own independent tax and business systems based on common law. Hong Kong has some of the lowest tax rates in the world, making it an attractive destination to establish, especially when looking to access the Asian market in general and China in particular.

Currency is Hong Kong Dollar (HKD)

Abbreviations:

APA Advance Pricing Agreement
CEPACloser Economic Partnership Arrangement
CFCControlled Foreign Company
CTC Corporate Treasury Centres
CUP Comparable Uncontrolled Price
DTA Double Tax Agreement
FoAForce of Attraction
GAARGeneral Anti-Avoidance Rule
HKDHong Kong Dollar
IPRIntellectual Property Rights
IRDInland Revenue Department
OECDOrganization for Economic Cooperation and Development
PEPermanent Establishment
SARSpecial Administrative Region
TPTransfer Pricing
VATValue Added Tax
WHTWithholding Tax