However, the indications are that the possible introduction of broader based taxes are not too far away. I expect this situation to last until 2004-05. But non-recurrent items are by their nature unstable and unreliable sources of revenue.
Employee is an expatriate married with two children.
No contribution to any approved pension fund, and in the case of the Philippines it is assumed that the expatriate is a resident alien. From this table it can be seen that, from both a corporate and personal taxation standpoint, Hong Kong s tax rates are significantly lower than our Asian neighbours. Whilst this may indicate that the introduction of a broader based tax could be introduced without prejudicing Hong Kong s status as a low tax jurisdiction, it is equally important to assess the impact which high levels of land premium and related costs have on the cost of living and conducting business in Hong Kong. The Financial Secretary clearly underlined the importance to Hong Kong of being regarded as a leading financial centre in Asia and a suitable jurisdiction to locate a regional head office, particularly for those businesses focusing on the vast China market. However, the cost of doing business in Hong Kong will be a critical factor particularly at a time when our competitors seek to compete for the business of the same international corporations.