One of the main reasons Hong Kong is so successful is its tax system. Because of the low, flat tax rates for all, the government actually witnessed an increase in revenue. In contrast, many other countries have high tax rates and the government struggles to collect enough income.
Hong Kong has historically had a low tax policy. Taxes were maintained low in the early days of the colony to stimulate trade and investment. After the city was handed over to China in 1997, this strategy was maintained.
The current tax rates were implemented in 2009 and have been stable ever then.The low tax rates have contributed to Hong Kong's status as one of the world's most prosperous cities. It is also one of the most convenient areas to conduct business.
This is why the city is home to so many global corporations' regional offices.If other countries followed Hong Kong's lead and implemented low, flat tax rates, their economy would benefit and government revenue would increase.