Tax concessions for the shipping industry
Circular Ref: A(21)230
Issue Date: 03 Dec 2021
We have received member enquiries about the government plan on the above.
As you may recall, last year, the government already introduced tax exemption for ship leasing and half-rate tax concession for ship leasing management and marine insurance businesses.
More recently, further to the recommendations of a dedicated task force of the Hong Kong Maritime and Port Board (HKMPB) chaired by our Past Chairman, Mr Bjorn Hojgaard, the HKMPB endorsed a new tax proposal, which aims to provide for half-rate tax concessions (i.e. 8.25%) for ship managers, ship brokers and ship agents, with a view to attracting more members of the global maritime industry to establish a business presence in Hong Kong.
The Association welcomes the tax concession proposal, which should generate more business opportunities for maritime and maritime business services, and further consolidate Hong Kong’s position as an international maritime centre.
As we understand it, the government is working on a legislative exercise to amend the Inland Revenue Ordinance for the introduction of the tax concessions, and the exercise may complete in the first half of next year (2022).
We will keep members posted about the development.