The Hong Kong Inland Revenue Department has announced that Inland Revenue Bill (Amendment) (No. 3) 2013 has been enacted. The bill provides a concessionary tax rate of 8.25% on the profits from the business of insuring offshore risks. This rate is half the standard corporate income tax rate of 16.5%.
In order to enjoy the concessionary tax rate, the following conditions must be met:
- The taxpayer must be an authorized captive insurer as defined in the Insurance Companies Ordinance;
- The taxpa…