Secretary for Financial Services & the Treasury Christopher Hui welcomed the passage of the Inland Revenue (Amendment) (Profits Tax Concessions for Insurance-related Businesses) Bill 2019 by the Legislative Council today.

The ordinance seeks to amend the Inland Revenue Ordinance to reduce the profits tax rate by 50%, bringing it to 8.25%, for all general reinsurance businesses and selected general insurance businesses of direct insurers, as well as selected insurance brokerage businesses.

Mr Hui said it would promote the development of Hong Kong’s marine and specialty risk insurance businesses and enhance the development of high value-added maritime services.

He added that the ordinance would also assist the insurance industry in seizing new opportunities, including those arising from the Belt & Road Initiative.

The Government and the Insurance Authority will proceed with the next stage of preparatory work, including the formulation of implementation details and drafting of subsidiary legislation, to give effect to the tax concessions by the end of the year or early 2021.