Tax Changes Needed to Help Boost ‘Greater Bay Area’ Plan
In an interview with South China Morning Post, Prof. Xufei Ma compared the Greater Bay Area plan to Deng Xiaoping’s economic reforms first implemented in the region in the late 1970s, saying that “what are the major benefits of the 1979 reform and open door policy? If you can answer this question, you may also get similar answers to the Greater Bay Area plan.”
First proposed in 2011, the Chinese government hopes the bay area, or Guangdong-Hong Kong-Macau Greater Bay Area as it is officially known, will provide an engine of growth for China’s economy. The area is similar to the deltas in Tokyo and New York.
Consisting of 11 cities in southern Guangdong province, plus Hong Kong and Macau, some estimates place the combined economy of the region at US$3.6 trillion by 2030, making it the fifth largest economic zone in the world.
PricewaterhouseCoopers (PwC) recently submitted an advocacy paper to the Hong Kong government on policies that could benefit companies and individuals who do business in the Greater Bay Area.
The recommendations included improving cross-border tax policies, encouraging Hong Kong companies to establish branches on the mainland to reduce their tax burden, and simplifying the tax code for individuals who need to travel to work in the area.
Jeremy Choi, a partner at PwC in Hong Kong, said the Greater Bay Area plan provided an opportunity for Hong Kong business seeking land to expand their businesses to approach other cities in the bay area zone.
Others are also optimistic about the potential benefits from the bay area plan, but say it will require a “national-level approach” to succeed.
In an interview with South China Morning Post, Xufei Ma, Associate Professor of Department of Management and Director of Centre for Entrepreneurship at The Chinese University of Hong Kong Business School compared the plan to Deng Xiaoping’s economic reforms first implemented in the region in the late 1970s.
“What are the major benefits of the 1979 reform and open door policy?” said Prof. Ma. “If you can answer this question, you may also get similar answers to the Greater Bay Area plan.”… Read More (PDF)
This article was reprinted in the South China Morning Post print edition titled “HK incentives needed for Greater Bay Area plan”. Please click the image below to read the story.
Source: South China Morning Post
Date published: 4 October, 2017 / 5 October, 2017 (print edition)
