• Service: Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 1/17/2014

Hong Kong - Tax concession introduced for captive insurance companies 

January 17:  Legislation in Hong Kong was introduced into the Legislative Council on 8 January 2014 to provide a profits tax concession to captive insurance companies for profits from their business of insurance of offshore risks. These profits are to be chargeable to profits tax at one-half of the normal rate, that is, 8.25%.

The Inland Revenue (Amendment) (No. 3) Bill 2013 was gazetted on 27 December 2013. The objective of the Bill is to reduce by half the profits tax on profits derived from the offshore risks insurance business of captive insurers (which are typically set up to underwrite the risks of companies within the same group to which the captive insurers belong).

Subject to the Bill being passed by the Legislative Council, the tax concession will have effect for years of assessment 2013-14 and subsequent.

Read a January 2014 report prepared by the KPMG member firm in Hong Kong: Tax concession introduced for captive insurance companies

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