New Tax Concessions for Shipping-Related Businesses with Operations in HK

In July 2022, the Hong Kong Legislative Council passed the Inland Revenue (Amendment) (Tax Concessions for Certain Shipping-related Activities) Ordinance 2022 (the “New Law”), which takes retrospective effect and applies to sums received by or accrued to qualifying shipping commercial principals on or after 1 April 2022.

The New Law aims to attract overseas shipping commercial principals to set up their business presence in Hong Kong, with a view to stimulating local demand for shipping-related services and promoting the development of these shipping activities in Hong Kong, thereby making the tax regime in Hong Kong competitive vis-à-vis major competitors in the Asia-Pacific region.

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For further enquiries, please feel free to contact your usual PKF tax executives, or reach out to our Senior Tax Manager Jeffrey Lau (jeffreylau@pkf-hk.com) or Tax Partner Henry Fung (henryfung@pkf-hk.com).