The Hong Kong government has proposed a 50 percent profits tax reduction on offshore insurance business of captive insurance companies to attract more business and encourage local employment.
To help enterprises the financial secretary also proposed to waive the business registration fees for 2013-14.
“On profits tax, the Financial Secretary proposed to extend the profits tax exemption for offshore funds to allow private equity funds to enjoy the same tax exemption and to reduce the profits tax on the offshore insurance business of captive insurance companies, such that they will enjoy the same tax concessions as those currently applicable to reinsurance companies,” said a statement from the Hong Kong government.
Hong Kong is currently only home to two active captive insurers but is looking to attract more in the future.
