Hong Kong Launches Public Consultation on Enhanced Tiered Tax Regime for Corporate Treasury Centres

Hong Kong’s Financial Services and the Treasury Bureau and Inland Revenue Department launched a six-week public consultation on 27 July 2026 to revamp the tax concession regime for Corporate Treasury Centres (CTCs), closing on 4 September 2026. The initiative serves as a key step to implement the city’s “4T” CTC development framework, covering tax reform, double tax agreement expansion, targeted promotion and talent development, aiming to attract multinational corporations and scale up local treasury businesses.

A two-tiered tax structure is proposed under the consultation.

Tier 1 refines the existing regime by broadening interest expense deduction scopes, allowing deferred tax deductions and clarifying compliance definitions to boost tax certainty.

Tier 2 introduces a five-year IRD pre-approval scheme, offering eligible CTCs regulatory exemptions, 50% tax relief on qualified interest income and flexible deduction rules capped at 30% of EBITDA. The government will issue administrative clarifications in 2026 and table legislative amendments in the first half of 2027 to strengthen Hong Kong’s competitiveness as a premier global corporate treasury hub.