Hong Kong is set to introduce fresh tax incentives for shipping-related businesses and commodity traders as it seeks to strengthen its position as a global maritime and commodities hub.
A key feature of the new legislation is a half-rate profits tax concession for physical commodity trading. Eligible traders will pay profits tax at 8.25%, a move the government hopes will attract commodity trading houses to establish or expand operations in Hong Kong and create additional demand for maritime services.
The bill also proposes an optional 15% concessionary tax rate for shipping-related companies and commodity traders that fall within the scope of the OECD’s BEPS 2.0 global minimum tax regime. The measure is designed to reduce compliance costs associated with complex tax calculations while maintaining the competitiveness of Hong Kong’s maritime tax framework.
A spokesperson for the Transport and Logistics Bureau said a favourable tax regime remained “a key factor in attracting shipping-related companies to Hong Kong”.
The Hong Kong Shipowners Association (HKSOA) welcomed the move, noting it had previously recommended tax concessions for commodity trading as part of efforts to promote Hong Kong as a global maritime capital.
HKSOA chairman Richard Hext said: ““This initiative will help grow Hong Kong as an international finance, shipping and trade centre, as set out in the national plan. More commodity trading activity in Hong Kong will contribute to the co-development of all three sectors – finance, shipping and trade.”
Hong Kong has been gearing up to claw back traders – and then shipping firms – for the past few months with a notable delegation sent to this year’s Geneva Dry, the world’s premier commodities shipping conference.