Hong Kong Needs to Drop Maritime Taxes

May 24, 2018 Taxation in Hong Kong

maritime industries Hong KongHONG KONG – Hong Kong should drop taxes for the maritime industry to boost up the flagging sector.

On May 21st Financial Services Development Council of Hong Kong released a new report with a suggestion of how to help the city develop a maritime financing and leasing industry.

Among the suggestion was a call for some significant overhauls for the tax system in place for the industry.

The Council called on the local government to enact tax concessions for maritime and ship leasing management and maritime and shipping-related supporting service activities.

However, instead of just calling for tax breaks, the Council encouraged the government to conduct full consultations with the industry when planning its tax review package.

Further, the report called for the negotiations and launch of new double taxation agreements with major shipping countries of the world, such as Brazil and Australia.

Explaining the need for an expansion of the maritime industry, the chairman of the Council Laura Cha said “The maritime industry has been traditionally one of the pillar industries of Hong Kong but has shrunk in size over the last decade. As an international financial centre, Hong Kong is in a uniquely advantageous position to drive shipping-related financial services.”

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