Hong Kong's intellectual property laws apply to e-business. The government does not impose censorship on the Internet in Hong Kong. However, the government began a review of the Control of Obscene and Indecent Articles Ordinance in April 2000, partly to make it applicable to the Internet. Hong Kong does not impose any taxes on e-commerce transactions. In the unlikely event that the government should introduce taxes in this area, the rates are unlikely to exceed the low rates in force in the rest of the economy.
Tax evasion is fairly rare.
Hong Kong's liberal regulations on capital movement and absence of personal capital gains tax make it one of the region's leading tax shelters. A large number of local companies also develop software. Competition among the various websites and portals for information on the fast-growing China market is fierce. The Economist Intelligence Unit Limited 2001. All rights reserved.