The Hong Kong SAR government announced on the 28th that it welcomes the passage of the "2024 Taxation (Amendment) (Minimum Tax for Multinational Enterprise Groups) Bill" by the SAR Legislative Council, which aims to implement the "Erosion of Tax Base and Transfer of Profits 2.0" plan issued by the Organization for Economic Cooperation and Development to address tax evasion risks brought about by the digital economy. Starting from January 1, 2025, it will implement the world's lowest tax and Hong Kong's lowest supplementary tax in Hong Kong. The Secretary for Financial Services and the Treasury of the Hong Kong Special Administrative Region Government, Mr. Hui Cheng yu, stated that the implementation of the world's lowest tax and Hong Kong's lowest supplementary tax reflects Hong Kong's firm support for international cooperation to combat cross-border tax evasion and safeguard Hong Kong's taxation rights. By implementing a 15% global minimum tax on multinational corporations covered by the tax, countries and regions can no longer rely solely on lowering corporate income tax rates to attract funds and investments. In a more equitable global tax environment, our unique advantages in "One Country, Two Systems", connecting the world, first-class infrastructure, mature financial markets, high-quality talent pool, and the atmosphere of East West integration will be more prominent, further highlighting Hong Kong's position as an excellent business destination. According to the "Erosion of Tax Base and Transfer of Profits 2.0" plan, after implementing the minimum supplementary tax in Hong Kong, the Hong Kong SAR government can prioritize the collection of supplementary tax on multinational corporations whose effective tax rate in Hong Kong is less than 15%, raising their effective tax rate to 15%. Otherwise, the supplementary tax can be levied by other jurisdictions where the group has implemented the "Erosion of Tax Base and Transfer of Profits 2.0" plan. This will transfer Hong Kong's taxation power to other jurisdictions. The new mechanism is expected to generate approximately HKD 15 billion in additional revenue for the SAR government annually starting from 2027/2028. (New Society)