Hong Kong asks Portugal to leave its list of tax havens

Hong Kong has asked Portugal to leave its list of tax havens and said it already complies with European Union (EU) standards to combat tax evasion, the Chinese regional government said this Friday.

The request was presented Thursday in Lisbon by the territory’s minister of financial services and treasury “in light of Hong Kong’s ongoing efforts to support international cooperation,” according to a statement.

During a meeting with Secretary of State for Financial Affairs Claudia Reis Duarte, Christopher Hui Ching-yu “expressed concern” that Hong Kong has been considered a tax haven since Portugal created the list in 2004.

That “will subject Hong Kong companies to increased taxes and special measures” in Portugal, the official emphasized, who also recalled that both sides signed a double tax treaty that came into force in 2012.

The list includes 80 countries, territories and regions that Portugal classifies as having preferential tax regimes that are clearly more favorable and subject to higher tax rates on various financial transactions.

The General Tax Law provides that jurisdictions “may require the member of government responsible for the financial sector to request a review of their inclusion in the list, in particular on the basis of non-compliance with the criteria” set out in the General Tax Law. law.

Christopher Hui reminded Claudia Reis Duarte that in February the EU removed Hong Kong from its list of non-cooperative jurisdictions with Hong Kong for tax purposes.

The official said the decision “demonstrated the EU’s recognition of Hong Kong’s efforts” to introduce measures to combat “tax evasion.” [fiscal] cross-border tax arising from double non-taxation.”

Christopher Hui said he believes the Chinese special administrative region is already fully compliant with European standards.

Also on Thursday, the secretary spoke with Economy Minister Pedro Reis about “how to maintain sustainable economic growth and take advantage of mutual investment opportunities” between Portugal and Hong Kong, the statement said.

Christopher Hui also took part in a seminar with Portuguese businessmen about the Chinese currency capital market, the creation of a system of cryptocurrencies and other digital assets, and the financial technology (or “fintech”) already used in Hong Kong.

On Tuesday, the president of the NGO Hong Kong Watch told Lusa that Portugal must “defend its values” and discuss human rights abuses in Hong Kong during Christopher Hui’s visit.

“EU member states should not be drawn into Hong Kong’s ‘vibrant fintech scene’ in exchange for hiding a growing number of political prisoners, reducing the independence of the judiciary and violating international legal obligations,” Benedict Rogers said.