GBA tax challenges tackled in joint tax memorandum

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Guangdong, Hong Kong, Macau and Shenzhen signed, in Hong Kong, a memorandum (MoU) on tax cooperation, the Financial Services Bureau (DSF) has announced this week.

According to the statement, the MoU aims to promote the economic development of the Greater Bay Area (GBA) and improve the quality of tax services.

“The signing of the cooperation memorandum is a joint effort based on the increasingly complex tax environment and cross-border tax challenges,” the statement noted.

“According to the MoU, the four parties will cooperate in aspects including providing collaborative tax services, strengthening tax collection and administration cooperation, strengthening Information and experience sharing, and promotion of talent development.”

The statement added that the four parties also agreed to establish a contact system, using regular meetings and liaisons, which will determine matters related to international tax affairs.

The statement said the document is not only a reflection of cooperation between the different tax authorities but an important step in promoting regional economic development.

“As the global economic environment changes and tax policies continue to evolve, tax authorities in various regions need to work together to meet challenges and jointly promote sustainable economic development,” the statement reads.

It added the MoU “reflects the expectation of the four parties to optimize the allocation of resources, improve the efficiency of tax management, and provide better services to enterprises and taxpayers through this cooperation mechanism.”

Additionally, the four parties involved in the agreement will also share their tax policies, collection and management experience, and the latest technological applications to improve the overall level of tax management.

The document was signed by the tax bureau heads from Guangdong (Jiang Wufeng), Shenzhen (Guo Xiaolin), Hong Kong (Tam Tai Pang) and Macau (DSF director, Iong Kong Leong).

The Chief Executive of the Hong Kong SAR, John Lee, and the head of China’s State Taxation Administration, Hu Jinglin, officiated the signing ceremony. By Renato Marques