Hong Kong, 6 October 2026 – Hong Kong lawmakers are challenging whether a proposed five-year profits-tax incentive can attract major innovative enterprises whose research, regulatory and commercialisation cycles often run for a decade, placing the design of the city’s investment strategy under scrutiny.
The government has proposed a concessionary 5% tax rate, effectively half the standard corporate rate, for selected enterprises in areas including advanced manufacturing, innovation and technology, research and development, finance, headquarters functions, logistics and supply-chain management. An amendment bill is expected before year-end, giving legislators an opportunity to test the duration, eligibility rules and safeguards.
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