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Plans to Improve the Tax Insurance Incentives in Hong Kong

Written by: Editor

Plans-to-Improve-the-Tax-Insurance-Incentives-in-Hong-Kong.jpgA series of new policies, including tax measures for the insurance industry, were presented by the Hong Kong Financial Services Department at the beginning of the month. These changes aim to improve the city’s position as a well-known insurance hub in the Asia-Pacific region. Hong Kong is a business hub and one that offers investors, particularly advantageous tax requirements. Investors who want to open a Hong Kong company in the financial or insurance sector often choose this jurisdiction because of the tax measures.
 

Tax breaks for professional insurers in Hong Kong

 
The Financial Services Development Council proposed a series of tax measures to increase Hong Kong’s attractiveness as a regional insurance center and combat the existing challenges from other competitors in this field, most notably Singapore.
 
The report issued by the Financial Services Development Council recommends an extension of the current 50% profits tax break for professional reinsuring companies in the city. If approved by the Hong Kong Government, the tax break would also extend to offshore non-life businesses developed by direct insurers. The incentives could also be allowed for insurers dealing with marine risks in Hong Kong.
 
The measures were proposed as an initiative to prevent the downsizing or departure of international insurance and reinsurance companies.
 
Investors who want to open an insurance company in Hong Kong should consider a few considerations, such as the regulations that are currently applicable for this business field and also the requirements for company registration in Hong Kong.
 

Taxation in Hong Kong

 
The Special Administrative Region has a low taxation regime. The corporate income tax has a fixed value of 16% and a lower rate applies to unincorporated businesses.
 
Financial and insurance companies need to obtain special permits and licenses and will need to comply with the annual taxation and financial reporting requirements.
 
Many international insurance companies open a Hong Kong branch but other options are available when selecting the most suitable type of legal entity. You can request the aid provided by a local company registration agency to fund out more about the insurance sector.
 
Contact our company registration agents in Hong Kong for more details and the requirements for companies.
 
 

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