Competitive Tax Regime

Hong Kong has a low and simple tax regime. The low and predictable tax regime provides certainty for commercial undertakings and makes conditional concessions and rebates unnecessary. Internationally, Hong Kong has entered into bilateral tax relief arrangements covering shipping income with over 50 trading partners.

Ship operating businesses in Hong Kong enjoy tax concessions. Income from international carriage of goods or passengers and international towage undertaken by ships registered in Hong Kong is exempt from profits tax. Charter hire income from international operation of ships, regardless of the nationality of the ships, is also exempt from profits tax.

Favourable tax policies were also extended to marine-related insurance businesses and the underwriting of specialty risk, which will be subject to an 8.25% profits tax rate.