July 25, 2022
Hong Kong enacts new legislation providing tax incentives for shipping commercial principals
Hong Kong enacted the Inland Revenue (Amendment) (Tax Concessions for Certain Shipping-related Activities) Ordinance 2022 (the New Law) on 22 July 2022.1 It takes retrospective effect and applies to sums received by, or accrued to, qualifying shipping commercial principals on or after 1 April 2022.
Subject to certain anti-avoidance provisions, the New Law provides a dedicated tax concession regime offering tax incentives to qualifying shipping commercial principals (i.e., ship agents, ship managers and ship brokers) in Hong Kong:
See EY Global Tax Alert, Hong Kong proposes shipping-related tax concession regime, dated 22 June 2022 for additional details on the tax concession regime.
For additional information with respect to this Alert, please contact the following:
Ernst & Young Tax Services Limited, Hong Kong
Ernst & Young LLP (United States), Hong Kong Tax Desk, New York
Ernst & Young LLP (United States), Asia Pacific Business Group, New York
Ernst & Young LLP (United States), Asia Pacific Business Group, Chicago