Hong Kong Plugs Captive Insurance To Mainland Companies
The Permanent Secretary for Financial Services and the Treasury, Au King-chi, outlined Hong Kong’s plans to promote captive insurance for Mainland Chinese companies.
Au said that, as “financial co-operation between Hong Kong and the Mainland has all along been implemented in accordance with the ‘mutually beneficial’ principle”, Hong Kong’s Government hopes to encourage Mainland enterprises to leverage the city’s advantages.
The development of captive insurance would not only reinforce Hong Kong’s status as a regional insurance hub, but also diversify Hong Kong’s risk management services, and promote the development of other related professional services including reinsurance, accounting, actuarial, and legal services.
The Chinese Government has already announced a policy to encourage Mainland enterprises to form captive insurers in Hong Kong, while Hong Kong’s Government has amended the tax code to cut profits tax on the offshore business of captive insurers in half from April 1, 2013, to 8.25%
Also speaking at the seminar, the Acting Assistant Commissioner of Insurance (Policy and Development), Tony Chan, pointed out that “the application process for authorization of a captive insurer can be completed within three months provided that all the necessary documents are submitted.”
Source: lowtax
