Hong Kong's Proposed Amendment Provides Tax Incentives For Ship Leasing

- Feb 28, 2020-

On February 26, a new financial budget of the Hong Kong SAR government was published. Financial Secretary Chen maobo said that he would provide support for shipping logistics. One belt, one road initiative and the opportunities in the construction of the Gulf of Hongkong, Guangdong, Hong Kong and Macau will be promoted by the government to consolidate the status of the hub of the international and regional air shipping logistics center.            Chen maobo pointed out that in order to encourage the application of science and technology in the logistics industry to improve productivity, the government will allocate 345 million yuan to launch a pilot plan this year. Each qualified third-party logistics service provider can be funded to implement up to four projects totaling 1 million yuan, which are expected to benefit about 300 enterprises.            Chen said that the government will continue to assist the port industry in improving operational efficiency, and make good use of the advantages of professional services to develop high value-added maritime services. The government will amend the legislation to provide tax incentives for ship leasing activities, including the exemption of the profits tax of qualified ship lessors, half of the profits tax of qualified ship leasing managers, and half of the profits tax of qualified insurance businesses including marine insurance. At the same time, the government will also study other tax measures to attract more international shipping operators and clients to settle in Hong Kong.