• Service: Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 3/26/2014

Hong Kong - Tax relief for captive insurers 

March 26:  Under new legislation in Hong Kong, “captive insurers” will benefit from a 50% reduction in the profits tax on their insurance business of offshore risks.

The tax relief is provided in legislation (Inland Revenue (Amendment) Bill 2013) passed by Hong Kong’s Legislative Council on 19 March 2014, and the effective date is from the year of assessment 2013/14 and later.

The tax concession for captive insurers was proposed in the 2013-14 budget.

KPMG observation

Captive insurance is widely used as a risk management tool in developed economies but its current use in Asia is low. Attracting enterprises to set up captive insurers in Hong Kong is seen as helping the development of related businesses, such as reinsurance, legal and actuarial services. It also would make Hong Kong's risk management services more diversified, and would reinforce Hong Kong's status as a regional insurance hub.

Read a March 2014 report prepared by the KPMG member firm in Hong Kong: Concession for captive insurers passed

©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.

The KPMG logo and name are trademarks of KPMG International.

KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.

The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Direct comments, including requests for subscriptions, to
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.


Share this

Share this


Subscribe to receive the latest TaxNewsFlash email alerts (you must select the option for TaxNewsFlash)

Already a Subscriber? Login

Not a member? Subscribe now