Officials and business insiders from countries taking part in the Belt and Road Initiative (BRI) called on Tuesday for greater collaboration in international tax administration to break down barriers to cross-border trade and investment, as the global economy navigates a bumpy recovery.
Gathering at the fifth BRI Tax Administration Cooperation Forum in Hong Kong, they also highlighted the potential for the Special Administrative Region as an independent customs territory with its own tax regime to help facilitate this collaboration.
“As the world undergoes a tumultuous economic recovery, enhancing tax administration cooperation is crucial for eliminating barriers to cross-border trade and investment, and fostering inclusive economic growth,” Hu Jinglin, commissioner of the State Taxation Administration of China, said.
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The department has inked tax agreements with 114 countries and regions. Since 2013, it has managed to wipe out over 30 billion yuan ($4.27 billion) in double taxation for taxpayers through international collaboration.
Paata Kiladze, first deputy director-general of the revenue service of the Ministry of Finance of Georgia, highlighted the increasing influence of the BRI Tax Administration Cooperation Mechanism (BRITACOM), saying that more than 100 staff members from Georgia’s tax department have signed up for its online courses. He added that the country is also keen to share its good practices in tax administration through publications and online channels.
Christian Kaeser, global head of tax at German multinational technology conglomerate Siemens, said increased international cooperation, training and digital tools could help address some of the challenges for multinational corporations posed by the complexities of taxation and differences in tax administration between countries and regions.
Hong Kong Chief Executive John Lee Ka-chiu said the Special Administrative Region is more than willing to deepen collaboration and exchanges with other economies in the tax field.
“As a champion of free and multilateral trade, Hong Kong supports the coordinated efforts of the international tax community, actively engaging in initiatives designed to bring economies together,” said Lee.
As an independent customs territory with its own tax system, the SAR leverages its unique position to connect China with the global market, he added.
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During the forum, Hong Kong will sign a Comprehensive Avoidance of Double Taxation Agreement with Türkiye. Since 2003, the city has signed 50 such agreements, with more than 60 percent inked with jurisdictions participating in the BRI, China’s flagship project proposed in 2013 with an aim of facilitating investment and infrastructure.
These agreements “enable closer tax cooperation between governments, aligning Hong Kong’s practices with global standards”, Lee noted, adding that “transparent and fair tax policies could foster trust among investors, governments and taxpayers”.
In the latest World Competitiveness Yearbook published by the International Institute for Management Development in June, Hong Kong excels in the category of tax policy, where it ranks first in the Asia-Pacific region and second globally.
The forum also announced the tax authority of Maldives has joined the BRITACOM, bringing its membership to 37 jurisdictions. In addition, the Belt and Road Initiative Tax Academy in Algiers officially opened its doors, becoming the sixth academy in the network, following those in China, Kazakhstan, and Saudi Arabia.
On the same day, Hong Kong, Macao, Guangdong province, and Shenzhen signed a memorandum of cooperation aimed at deepening tax collaboration across the Guangdong-Hong Kong-Macao Greater Bay Area and better serving taxpayers.
This would serve as a springboard to further promote freer and more convenient trade and investment between Hong Kong and the Chinese mainland, said Hu.
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The forum, a flagship event of the BRITACOM established in 2019 under the lead of the State Taxation Administration of China, is hosted every year by member tax administrations in rotation. The fourth conference was hosted by Georgia in its capital, Tbilisi, last September.
The HKSAR is the host city of this year’s three-day event, which has attracted over 400 officials of tax administrations, tax specialists, academics, and professionals from nearly 30 jurisdictions. At the BRITACOM council meeting concluded on Tuesday morning, Tam Tai-pang, commissioner of the Inland Revenue Department of the Hong Kong SAR government, was elected as the chair of the council.
