The three-day 5th Belt and Road Initiative Tax Administration Cooperation Forum (BRITACOF), hosted by the Inland Revenue Department, is being held from today (September 24) at the AsiaWorld-Expo, marking the first time for Hong Kong to host BRITACOF. This year's BRITACOF, themed "Deepening Tax Administration Cooperation for High-Quality Belt and Road Development", gathered more than 400 tax officials, tax experts, as well as representatives from international organisations, academic institutions and enterprises from different countries and regions to discuss emerging tax issues and exchange tax administration experiences.
 
     Participants will engage in in-depth discussions on five major topics, including raising tax certainty, promoting tax administration digitalisation, improving tax environment, reinforcing capacity building of tax administration and optimising tax administration measures in the financial sector. BRITACOF also features a business and industry tax dialogue session to build a communication platform for participating tax officials and stakeholders from business and industrial sectors.

     The Chief Executive, Mr John Lee, said in his welcome address, "As the only common law jurisdiction within China, our legal system in the business realm resembles that of most major international financial centres. Our robust legal system is backed by such long-standing institutional strengths as the free flow of information, capital, goods and people, low and simple tax system, and highly open and internationalised market. Together, they ensure our strategic role as a 'super connector' and a 'super value-adder' between the Mainland and the rest of the world. 

     "Tax administration plays a crucial role in ensuring sustainable development. Efficient tax systems provide the essential resources for the delivery of public services and infrastructure. Hong Kong believes that transparent and fair tax policies could foster trust among investors, governments and taxpayers. As a champion of free and multilateral trade, Hong Kong supports the co-ordinated efforts of the international tax community, actively engaging in initiatives designed to bring economies together."

     In his keynote speech at the opening ceremony, the Commissioner of the State Taxation Administration (STA), Mr Hu Jinglin, said, "The recovery of world economy is challenging. The pursuit of peace, development, co-operation and mutual benefit is an irreversible trend. Differences in tax systems and collection management among countries have an important impact on the liberalisation and facilitation of cross-border trade and investment. Deepening tax administration co-operation is of great significance in removing barriers to cross-border trade and investment, promoting inclusive growth of the global economy, and facilitating high-quality Belt and Road development. The STA is willing to work with all parties to deepen tax administration co-operation for high-quality Belt and Road development, so as to make new contributions to the construction of a community with a shared future for mankind."

     Speaking at the welcome dinner, the Secretary for Financial Services and the Treasury, Mr Christopher Hui, said that BRITACOF is a crucial and exemplary international platform designed to enhance co-operation among tax administrations along the Belt and Road.

     He said, "The hosting of the 5th BRITACOF in Hong Kong underscores our unique gateway role in fostering partnerships and creating value for economies, businesses and people along the Belt and Road."

     "Hong Kong has always been committed to upholding international tax standards, including the Base Erosion and Profit Shifting (BEPS) framework set by the Organisation for Economic Co-operation and Development. We are also fully supportive of the international standard of tax information exchange to avoid tax evasion. By endorsing and implementing these standards, Hong Kong ensures that Belt and Road projects involving Hong Kong companies adhere to the highest international benchmarks in terms of tax governance and transparency," Mr Hui added.

     On the margins of the 5th BRITACOF, the Chief Executive, Mr John Lee, met with the Commissioner of the STA, Mr Hu Jinglin, and witnessed the signing of a memorandum of understanding (MOU) on tax co-operation within the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) among the finance and taxation departments of Guangdong Province, Shenzhen, the Hong Kong Special Administrative Region (SAR) and the Macao SAR. The MOU will promote the co-ordination of tax administration and services in the GBA, which facilitates Hong Kong's active integration into the overall national development. The deepened tax co-operation in the GBA can enhance Hong Kong's tax competitiveness and create a more favourable business environment.

     In addition, during BRITACOF, Mr Hui held bilateral meetings separately with representatives from Kazakhstan, Maldives, Tajikistan and Türkiye to discuss deepening tax co-operation at the international and Belt and Road levels.

     Mr Hui also signed a comprehensive avoidance of double taxation agreement (CDTA) with the Government of the Republic of Türkiye on behalf of the Hong Kong SAR Government at the 5th BRITACOF today to foster closer economic, trade and investment relations between Hong Kong and Türkiye with a view to jointly contributing to the high-quality Belt and Road development through strengthened bilateral ties. This is the 51st CDTA signed by Hong Kong, marking a significant step forward for Hong Kong in fostering international tax co-operation.

     Established in 2019 under the lead of the STA, the Belt and Road Initiative Tax Administration Cooperation Mechanism (BRITACOM) is a non-profit official mechanism for the discussion on tax administration co-operation among countries and regions along the Belt and Road. With the vision of promoting cross-border trade and investment and fostering regional economic co-operation, BRITACOM aims at removing tax obstacles and building a growth-friendly tax environment, so as to realise an inclusive and a sustainable development. BRITACOF, the annual signature event of BRITACOM, is hosted by member tax administrations in rotation. This year's BRITACOF is hosted by Hong Kong and chaired by the Commissioner of Inland Revenue, Mr Tam Tai-pang.

     For details of the 5th BRITACOF, please visit the thematic website (www.ird.gov.hk/BRITACOF/eng/index.html).

          

     Following is the speech by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, at the 5th Belt and Road Initiative Tax Administration Cooperation Forum welcome dinner tonight (September 24):

Honourable Commissioner Hu Jinglin (Commissioner of the State Taxation Administration), Deputy Commissioner Wang Daoshu (Deputy Commissioner of the State Taxation Administration and Executive Secretary of the Belt and Road Initiative Tax Administration Cooperation Mechanism Secretariat), honourable Ministers and senior officials from the Belt and Road economies, distinguished guests, ladies and gentlemen,

     Good evening. I am delighted to welcome you all to the dinner tonight. I am very glad to see so many esteemed officials from tax administrations, representatives from international organisations, business leaders and tax experts from around the world to come to this vibrant city.  

     I trust your day has been both rewarding and stimulating, filled with productive discussions on emerging tax issues and valuable exchanges of experiences in tax administration. I hope the dialogues today have sparked innovative ideas and fostered meaningful collaborations that will continue to develop throughout this Forum and beyond.

     The Belt and Road Initiative Tax Administration Cooperation Mechanism (BRITACOM) has taken up an active role in building a growth-friendly tax environment through promoting international co-operation on tax administration.  Since its inception five years ago, BRITACOM has made substantial achievements and significant milestones in fostering co-operation and building capacity in taxation across Belt and Road jurisdictions. All of you here tonight have witnessed these successes and contributed profoundly to our shared objectives.

     The BRITACOF (Belt and Road Initiative Tax Administration Cooperation Forum) is a crucial and exemplary international platform designed to enhance co-operation among tax administrations along the Belt and Road. It facilitates insightful exchanges of experience and expertise among tax authorities, experts, practitioners and the business community, which enable participants to effectively address tax related challenges in their own jurisdictions.    

     Hong Kong has actively participated in the previous four Forums, and it is our privilege to host this year's Forum for the first time. I am thrilled to welcome over 400 delegates, both international and local, to this mega event. Indeed, the hosting of the 5th BRITACOF in Hong Kong underscores our unique gateway role in fostering partnerships and creating value for economies, businesses and people along the Belt and Road.

     Our commitment to realising the visionary goal of the Belt and Road Initiative goes beyond participation. As the world's premier international financial centre, Hong Kong brings unique advantages to the table. By integrating our sophisticated infrastructure, globally competitive financial services and transparent legal system, we offer unmatched opportunities for our Belt and Road partners to connect and grow. In every endeavour, we strive to consolidate these advantages, ensuring that Hong Kong continues to serve as a dynamic gateway for international trade and investment, and a "super connector" and "super value-adder" in connecting Mainland China and other Belt and Road jurisdictions.  

     Now back to the core of our Forum – tax co-operation. An efficient and effective tax system is essential in driving the sustainable growth of an economy. On one hand, it provides resources for governments to deliver essential public services and launch new developments. On the other, tax system must be fair and transparent to avoid becoming a disincentive to people and businesses. Hong Kong's tax system is internationally recognised for its clarity, efficiency, and compliance with international standards. In fact, the latest World Competitiveness Yearbook 2024 published by the International Institute for Management Development once again acknowledged Hong Kong as one of the most competitive economies in the world, with "Tax Policy" ranking first in the Asia-Pacific region and second in the world. And tomorrow, at a panel to be hosted by Benjamin, our Deputy Commissioner (of Inland Revenue), you will be able to share more and learn more about that. Against this backdrop, Hong Kong is perfectly positioned to be a catalyst for promoting economic activities under the Belt and Road Initiative. 

     Also, as the globalisation of economic activities continues to evolve and new ways of working and doing business emerge, it is more important than ever for tax administrations to build capacity and share knowledge together. Hong Kong has always been committed to upholding international tax standards, including the Base Erosion and Profit Shifting (BEPS) framework set by the Organisation for Economic Co-operation and Development. We are also fully supportive of the international standard of tax information exchange to avoid tax evasion. By endorsing and implementing these standards, Hong Kong ensures that Belt and Road projects involving Hong Kong companies adhere to the highest international benchmarks in terms of tax governance and transparency.  

     The future holds great promise, and through our concerted efforts, I am confident that we will continue to see a cascade of benefits for all involved. At this juncture, I am pleased to announce a key achievement that reflects our dedication to strengthening global tax collaboration. 

     On behalf of the Hong Kong Special Administrative Region Government, I had the honour of signing a new Comprehensive Avoidance of Double Taxation Agreement (CDTA) with Türkiye today as witnessed by all of you. This agreement, along with three others signed earlier this year, bring our total number of CDTAs to 51. Each agreement signed is a step forward in our ongoing effort to broaden Hong Kong's tax treaty network and reaffirm our commitment to fostering efficient, transparent and fair international tax practices.  

     Our efforts to conclude more CDTAs with our trading and investment partners from the Belt and Road Initiative will definitely continue. These agreements are instrumental in fostering deeper economic and trade connections between Hong Kong and the Belt and Road jurisdictions. We are now having negotiations with 16 jurisdictions, and about 80 per cent of them are along the Belt and Road. For those who have yet to be our CDTA partners, I hope we can make it happen soon.

     Looking ahead, I am filled with optimism about our collective efforts to create a sustainable tax environment. Together, let us strengthen our co-operation in tax administration to support high-quality development of the Belt and Road Initiative, paving the way for a new era with abundant opportunities.   

     Ladies and gentlemen, I hope you will enjoy this meal and the Chinese cultural performance. And as you are here, I invite you to take some time to explore our wonderful city. Hong Kong actually has 24 country parks, 22 special areas for conservation and other protected areas that together cover more than 40 per cent of the city's land area. We have some 80 hiking trails totalling 500 kilometres within these areas. We also have some 42 beaches in Hong Kong that you can enjoy the sunshine. Of course, don't forget to try our wonderful food as well, ranging from street food, dim sum to Michelin cuisine.

     Have a productive Forum and an enjoyable stay in Hong Kong. Thank you.

  

     The Secretary for Innovation, Technology and Industry, Professor Sun Dong, began his visit to Wuhan, Hubei Province today (September 24).

     Professor Sun called on Vice Governor of Hubei Province Ms Chen Ping, and exchanged views on the development of innovation and technology (I&T) and new industries in Hong Kong and Hubei. At the meeting, Professor Sun introduced the Hong Kong Special Administrative Region Government's plan and latest work on leading the development of the city’s I&T industry. He also learned about Hubei’s strengths in I&T and advanced manufacturing, particularly the development of chips and new energy vehicle industries. They also explored ways to further strengthen co-operation between Hubei and Hong Kong in technological innovation and industry development.

     Professor Sun later visited the Wuhan National Laboratory for Optoelectronics of the Huazhong University of Science and Technology. It is one of the first six national research centres approved by the Ministry of Science and Technology, and is a research platform focusing on fundamental science and technology in the fields of optoelectronics for information, energy and life. Professor Sun was briefed on the laboratory's development history, research conditions and innovation achievements, as well as the comprehensive support and services it provides to the "Optics Valley of China, Wuhan" and the development and industrialisation of the optoelectronics industry.

     Professor Sun then visited the Jiufengshan Laboratory to learn about its work on promoting the development of the fundamental research of compound semiconductor in order to support Wuhan to become a global compound semiconductor innovation centre and industry cluster. In a tour of the laboratory's chip process lines and professional testing infrastructure, he was kept abreast of the facility's efforts in pushing forward the technological frontier by aiming at research and development (R&D), technology development, transformation of R&D outcomes as well as detection and analysis on compound semiconductor.

     Professor Sun visited the Wuhan East Lake High-tech Development Zone in the evening and received an update on the development of the optoelectronics information industry cluster, as well as the efforts and achievements in building the "World Optics Valley". Professor Sun also encouraged the East Lake High-tech Development Zone to set up accelerators and incubators in Hong Kong.
 
     The Commissioner for Industry (Innovation and Technology), Dr Ge Ming, also joined the visit.
 
     Professor Sun will continue his visit to Wuhan tomorrow (September 25).

            

     The Education Bureau (EDB) today (September 24) held the "Love Our Home, Treasure Our Country" – Celebration of the 75th Anniversary of the Founding of the People's Republic of China and Joint School National Education Activities Kick-off Ceremony. The Bureau announced that it will collaborate with Tung Wah Group of Hospitals, Po Leung Kuk, the Hong Kong Council of the Church of Christ in China, the Lok Sin Tong Benevolent Society, Kowloon, Hong Kong Subsidized Secondary Schools Council, Hong Kong Direct Subsidy Scheme Schools Council, Hong Kong Aided Primary School Heads Association and Subsidized Primary Schools Council to jointly organise the "Love Our Home, Treasure Our Country 3.0" series of joint school national education activities in the 2024/25 school year, with an aim of deepening students' understanding of Chinese culture and strengthening their affection for and sense of belonging to the country.
 
     The Deputy Chief Secretary for Administration, Mr Cheuk Wing-hing; the Secretary for Education, Dr Choi Yuk-lin; the Convenor of the Working Group on Patriotic Education, Ms Starry Lee; the Division Director of the Education, Science and Technology Department of the Liaison Office of the Central People's Government in the Hong Kong Special Administrative Region, Dr He Jinhui, together with representatives from school sponsoring bodies, school councils and school head associations involved in the activities, jointly officiated at the kick-off ceremony. About 2 500 representatives from school sponsoring bodies and the EDB, principals, teachers, students and parents attended.
 
     Addressing the event, Mr Cheuk said that the "Love Our Home, Treasure Our Country 3.0" joint school national education activities will further expand the scale of the event. Participating schools cover kindergartens, primary schools, secondary schools, special schools and sister schools on the Mainland. Joint school collaboration not only strengthens exchanges among schools but also combines strengths to develop resources, enabling a patriotic atmosphere and sentiments to extend continuously across school campuses in all districts of Hong Kong.
 
     Mr Cheuk said, "Love for the country should be the value and sentiment of every Chinese national. Patriotic education and activities play an important role in nurturing the growth of patriotic sentiments." He thanked practitioners from the education sector for remaining steadfast in their roles. Through learning inside and outside the classroom, students are given the opportunity to gain an in-depth understanding of the country's history, culture and values from an early age, and experience the distinctiveness of traditional Chinese culture, thereby fostering their pride in being Chinese and enhancing their national pride and sense of responsibility and ownership. 
 
     The kick-off ceremony featured a variety of rich programmes, including the performance of the magnificent "Hymn to the Sun" by a joint school Chinese orchestra formed by nearly 90 students. In addition, over 100 students performed lion dances, martial arts and other dances. A choir composed of 75 principals from school sponsoring bodies, school councils and government schools marked the finale of the ceremony with a song to express their warm congratulations on the 75th anniversary of the founding of the People's Republic of China.
 
     Highlights of the kick-off ceremony will be broadcast on RTHK TV 31 at 1.30pm on September 28 (Saturday).

          

     Following is the speech by the Financial Secretary, Mr Paul Chan, at business luncheon Hong Kong-Spain: Partnering for Success in Madrid, Spain, today (September 24, Madrid time):
 
Dr Peter Lam (Chairman of the Hong Kong Trade Development Council), Ms Jarillo (Deputy Director General for Asia, Europe and Oceania, Ministry of Economy, Trade and Enterprise of Spain, Ms Laura Jarillo), distinguished guests, ladies and gentlemen,
 
     Good afternoon. I'm delighted to be here, in Madrid, the dynamic capital and financial heart of Spain, a city renowned for its world-class museums and fine dining and wine, not to mention the best football club in Europe, if not the world. What more can a visitor ask for?

     Well, I can tell you that this speaker, and the young and energetic innovation and technology delegation here with me, are pleased to be here, with you, to talk about how Spanish and Hong Kong business can partner for success long-term, mutually rewarding success.

Hong Kong, connecting Spain and Asia

     Ladies and gentlemen, like Spain, Hong Kong is back in business after the challenges of the COVID pandemic, back creating opportunity for a world of business. Spain, included of course.

     Hong Kong has long been recognised as one of the best connected cities in the world. Half the global population is no more than a five-hour flight away from us.

     Before the pandemic, Hong Kong International Airport operated 1 100 flights a day, covering 220 destinations. Today, passenger throughput is rebounding, reaching over 80 per cent of pre-pandemic levels on peak days, with full resumption expected by year's end.

     As for cargo, our airport has been the busiest in the world for 13 of the last 14 years.

     This strategic connectivity is enhanced by Hong Kong's institutional advantages, reinforcing our role as a "super connector" in Asia.

     The unique "one country, two systems" arrangement makes this possible.

     As part of China, Hong Kong enjoys convenient and sometimes priority access to the vast Mainland market, particularly the Guangdong-Hong Kong-Macao Greater Bay Area, a city cluster comprising Hong Kong, Macao and nine Mainland cities in Guangdong province. 

     The Greater Bay Area's collective population counts more than 87 million, with a GDP exceeding 1.8 trillion euros, surpassing that of Australia and the Republic of Korea.

     And, on a purchasing power parity basis, the per capita GDP of the Greater Bay Area is US$40,000, 75 per cent of Spain's. (Note: HK's is US$71,500)

     Hong Kong, let me add, is the most international city in China, thanks to the "two systems" that distinguish us.

     We are the only jurisdiction in China practising the common law system, our judiciary exercising its powers independently. Information, capital, goods and people flow freely in and out of our city. Our taxes are low and simple, with a currency pegged to the US dollar. Our regulatory systems and professional services align with the best international standards.

     Our commitment to the rule of law is exemplified by the Rule of Law Index, produced by the World Justice Project. In the latest Index, Hong Kong ranked 23rd and Spain 24th, both ahead of the United States.

     Hong Kong's enduring strengths will continue to thrive, as our country is committed to the "one country, two systems" principle for the long term. This commitment has been reiterated by President Xi Jinping on multiple occasions, and reaffirmed at various high-level state and party meetings in Beijing.

     Last year, China and Spain celebrated the 50th anniversary of diplomatic ties. And those ties continue to grow. Earlier this month, Prime Minister Sanchez was in Beijing, his second trip to the Chinese capital in two years.

     As political and economic ties between our two countries strengthen, Hong Kong is proud to play a pivotal role in fostering more two-way investments, and more economic, innovation and cultural exchanges.

Financial Services

     One obvious area where we can contribute is financial services. 

     Hong Kong, after all, is an international financial centre – number three worldwide, behind only New York and London, according to the latest Global Financial Centres Index, released today.

     We have a robust fund-raising market. Our stock market's total capitalisation stands at 3.7 trillion euros, while assets managed by private equity and venture capital exceed 200 billion euros. Hong Kong is the leading biotech fund-raising hub in Asia, too.

     A defining feature of our capital market are the "Connect Schemes" with the Mainland. Under the schemes, Mainland investors can buy stock, bonds, ETFs and derivatives directly from Hong Kong, while foreign investors can buy similar financial products on the Mainland through Hong Kong. In short, Spanish companies looking to list or issue bonds in Hong Kong can tap the capital from both the Mainland and international markets.

     Hong Kong is also the world's offshore renminbi hub. As the use of renminbi as a trade and reserve currency increases, businesses will naturally look for renminbi-denominated investment and risk-management tools. Hong Kong handles approximately 80 per cent of global offshore renminbi transactions, offering a wide range of investment and risk-management products.

     Then there's green and sustainable finance. We have long been Asia's leader in green finance, issuing, on average, more than 55 billion euros in green and sustainable debt a year over the past three years.

     Our green standards align with the best international practices. To take an example, the Hong Kong Taxonomy for Sustainable Finance, released in May, is highly compatible with the European Union's Taxonomy for Sustainable Activities.

     For green projects looking for funding, Hong Kong is simply Asia's premier destination.

Innovation and Technology

     No less important is our commitment to rise as a global innovation and technology hub, together with the Greater Bay Area.

     We have what it takes to realise that ambition. Hong Kong is home to five global top 100 universities, and our two medical schools are among the world's top 40.

     We also support 29 labs and research and development centres in collaboration with prestigious universities around the world. 

     Our start-up system is thriving, offering a variety of innovative products in fintech, green tech, biotech, supply-chain management, big-data analytics and more. And 20 per cent of our 4 200 start-ups were founded by overseas entrepreneurs.

     Many of them are based in our two main innovation flagships: Science and Technology Park and Cyberport. And you will soon hear more from senior executives from these institutions, Albert and Eric. Let me add that our delegation members, many of them founders and CEOs of start-ups, are eager to talk to you, to explore business opportunities together.

     Hong Kong boasts a full-spectrum financing market, including banks, private equity funds, venture-capital funds and a well-developed stock and bond market. These provide abundant financial support for tech companies local and global, at different stages of growth.

     Greater Bay Area cities, let me add, each offers distinct strengths in innovation and technology; from basic research to technological application, commercialisation, and advanced manufacturing. 

     This year, the World Intellectual Property Organization's Global Innovation Index ranked the Shenzhen-Hong Kong-Guangzhou cluster second, globally, for the fifth consecutive year.

     Now, allow me now to highlight a few I&T areas where Hong Kong and the Greater Bay Area offer singular advantages, starting with artificial intelligence. 

     Crucial to AI are algorithms, supercomputing power, data and application scenarios, all of which Hong Kong is blessed with. We serve as a convergence point for Mainland and international data. We are also investing in the necessary infrastructure, including a supercomputer centre. Hong Kong and the Greater Bay Area provide many different application scenarios for AI. Many AI companies, let me add, are choosing Hong Kong to develop their large language models and to go global.

     Biotechnology is also a priority. And we are planning to conduct clinical trials for the Greater Bay Area. We are also working on a "primary evaluation system" that will allow medicine and medical devices approved in Hong Kong to be widely used in the Greater Bay Area, the Asian region and around the world.

     Then there's the Northern Metropolis, a 300-square kilometre area in Hong Kong bordering Shenzhen. The Northern Metropolis is destined to rise as an innovation and technology hub, a vast bridgehead for Hong Kong's co-operation with other Greater Bay Area cities.

     Ladies and gentlemen, that just touches on the opportunities Hong Kong is actively pursuing. But let me say that we're particularly focused on four areas: AI, biotech, fintech and new energy and new materials. We are bringing in strategic companies to help us develop those sectors. Since the end of 2022, we have attracted over 100 tech companies to Hong Kong. Together, they will invest about 6 billion euros and create more than 15 000 jobs in our city. 

     We are equally keen on attracting talent. Since the launch of the new talent admission schemes and updating existing ones, to date, we've received some 360 000 applications under our various talent admission schemes. About 226 000 applications have been approved, and 150 000 professionals have already arrived in Hong Kong, I'm pleased to say.

Concluding remarks

     Ladies and gentlemen, Hong Kong offers boundless opportunities for Spanish companies – as a gateway to the Chinese Mainland and throughout Asia, and as a hub for financial services and I&T.

     My thanks to the Hong Kong Trade Development Council for hosting today's luncheon, and to our Spanish partners, including CEOC, ICEX and the Spanish Chamber of Commerce, for make this welcome gathering possible.

     I am happy now to take your questions, to hear your thoughts and ideas on how our two economies and peoples can deepen our co-operation, creating far-reaching opportunities that benefit us all.

     Thank you.