Hong Kong
Asia's Powerhouse
Hong Kong is perceived by many as Asia's leading financial centre and in 2004 (and later in 2007) the Index of Economic Freedom survey, issued by the Heritage Foundation, rated Hong Kong as the world's most liberal economy for the tenth year running.Favourable Taxation Regime
Hong Kong taxes income with a Hong Kong source at a standard rate of 16%. Earnings outside Hong Kong and capital gains are not taxed. Corporation tax is 17.5% and there is an unlimited 'carry over' of losses.Financial Centre
Hong Kong's stock market is the second largest in Asia after Tokyo's and is considerably more liquid than most others in Asia. The banking sector, the ninth largest in the world by some measures, is also among the world's best regulated. It is lauded for its high levels of corporate governance, risk management and high capital adequacy ratios. These factors make Hong Kong an ideal place for commerce.Beyond Hong Kong's success as a financial centre, it provides an excellent portal to mainland China due to fiscal benefits as well as a shared culture.