Hong Kong has earned a reputation as one of the most business-friendly jurisdictions in the world. At the heart of this reputation lies its simple, low-tax system. While the two-tier profits tax structure (8.25% on the first HK$2 million and 16.5% thereafter) often receives the most attention, equally important are the absence of capital gains tax, no value-added tax (VAT), and no withholding tax on dividends and interest. These features significantly reduce the cost of doing