The Hong Kong government should consider a "super" tax deduction of 200 percent for company expenses relating to research and development, innovation, brand building and market development conducted in "Belt and Road" countries, an Australian professional accounting body has suggested.

CPA Australia, one of the world's largest professional accounting bodies, said around 60 percent of Hong Kong-based members who responded to its latest survey believe the SAR government should provide tax incentives to companies participating in the "Belt and Road" initiative.

Besides calling for the introduction of a 200 percent "super" tax break on such expenses, CPA Australia also recommended that the government introduce a two-year tax exemption or 50-percent reduction in profits tax rate for Hong Kong-based companies that conduct fund-raising activities relating to the "Belt and Road" initiative, as well as consider expanding the SAR's tax treaty network to include countries like India, Bangladesh and Saudi Arabia.

The survey showed 77 percent of respondents believe that the government should take action to reform the tax system to improve the city's competitiveness.

The need for reforms to help Hong Kong's businesses remain regionally competitive has been identified as a key issue, with some 51 percent of respondents ranking Singapore as having the most internationally competitive tax system, with Hong Kong 1 percent down from last year to 29 percent, CPA Australia said.