(Yicai Global) Dec. 12 -- The Government of the Hong Kong Special Administrative Region (SAR) will consider development of a tax system in line with the local conditions, but it will not hastily cut corporate taxes, said Chan Mo-po (Paul Chan), financial secretary of Hong Kong. The SAR government will take into account the views of the international corporations in any future tax reform and will not aim to be a 'tax haven."

The current corporate tax rate in Hong Kong is only 16.5 percent, and no tariffs and capital gains tax are levied on imported goods except for cars, spirits, cosmetics and cigarettes, financial news site Cs.com.cn quoted Chan as saying on Dec. 10.

Given that a two-tiered corporate tax system is to be implemented soon and that Hong Kong will make substantial investment to promote technological innovation and other industry development in the future, the government will not rashly implement an "across-the-board" cut on the tax rates, he continued in an article.

When introducing tax concessions, the Hong Kong government should take into account the views of the international companies, Chan said, adding it should pay attention to international concerns over fair taxation. Hong Kong, as an international financial center and responsible member of the international community, must support international efforts to enhance tax transparency and combat cross-boundary tax evasion, and should not participate in the vicious competition among tax havens, Chan stressed.

Hong Kong will join the "Convention on Mutual Administrative Assistance in Tax Matters," developed by the Organisation for Economic Co-operation and Development (OECD) and the Council of Europe, in the future, and will exchange materials with other relevant parties in September 2018 to fulfill international tax obligations, he revealed.