Inland Revenue (Amendment) (Tax Concessions for Shipping-related Activities and Physical Commodity Trading) Bill 2026 to be gazetted on Friday
The Inland Revenue (Amendment) (Tax Concessions for Shipping-related Activities and Physical Commodity Trading) Bill 2026 will be published in the Gazettethis Friday(June 12) to amend the Inland Revenue Ordinance (Cap. 112) to enhance the existing tax concessions for shipping-related activities and to introduce a new half-rate tax concession regime for physical commodity trading.
To facilitate the compliance of in-scope multinational enterprise groups with the BEPS (Base Erosion and Profit Shifting) 2.0 requirements - a new tax reform package formulated by the Organisation for Economic Co-operation and Development (OECD) - the Government proposes to introduce an additional option of a 15 per cent concessionary tax rate in the preferential tax regimes for shipping-related companies to elect on an annual basis, which will help save their compliance costs in completing the complex tax calculations under BEPS2.0 regarding their operations in Hong Kong.
In addition, to attract commodity traders to Hong Kong to propel the maritime services sector towards a more vibrant trajectory, the Bill proposes to provide a new half-rate profits tax concession for physical commodity trading, echoing the industry's calls to strengthen the local maritime services ecosystem. The aforementioned 15 per cent concessionary tax rate option also applies to the half-rate tax concession regime for physical commodity trading.
The Transport and Logistics Bureau, Photo source: reference image
A spokesperson for the Transport and Logistics Bureau said, "A favourable tax regime is a key factor in attracting shipping-related companies to Hong Kong. In light of changes in international tax rules, the Government has reviewed the existing tax concessions for shipping-related activities and proposed making enhancements in compliance with international tax rules, including the introduction of tax deduction arrangements in line with international standards, while ensuring that Hong Kong's preferential tax regimes for shipping-related activities maintain their competitiveness after the implementation of BEPS 2.0, thereby sustaining the development momentum of the high value-added maritime services industry in Hong Kong.
"Commodity traders form an integral part of the maritime services ecosystem and are key users of maritime services. The proposed new tax concession regime for commodity trading will give Hong Kong a distinct advantage in attracting commodity traders to set up or expand their businesses in Hong Kong, thereby injecting demand and impetus into the maritime services industry, and unlocking substantial new growth opportunities for our city in forging ahead with the vision of becoming a global maritime capital," the spokesperson added.
Since 2020, the Government has launched and been actively promoting a series of tax concessions to encourage more shipping-related companies to establish or expand their presence in Hong Kong, yielding tangible results. For the years of assessment 2020/21 to 2023/24, the number of qualifying ship lessors benefiting from the tax concessions has soared by five times.
Since the introduction of the aforementioned tax concessions, there have been new changes in the international tax landscape. In response to base erosion and profit-shifting risks arising from the digitalisation of the economy, the OECD has formulated BEPS 2.0. To implement this new tax reform package, Hong Kong has introduced the Hong Kong Minimum Top-up-Tax under the Inland Revenue Ordinance to require an in-scope multinational enterprise group to pay a top-up tax as from 2025 if the effective tax rate of the tax paid by its constituent entities in Hong Kong is less than 15 per cent.
The Bill will be introduced into the Legislative Council for first reading on June 24.
Photo source: reference image
DH convenes 14th Meeting of International Advisory Board on Hong Kong Chinese Materia Medica Standards
The Department of Health (DH) today (July 14) convened the 14th Meeting of the International Advisory Board (IAB) on Hong Kong Chinese Materia Medica Standards (HKCMMS) to review the reference standards for 16 types of Chinese Materia Medica (CMM) commonly used in Hong Kong, and to discuss the future development of the HKCMMS. Over 60 experts from the Chinese Mainland, overseas and Hong Kong attended the meeting.
Since 2002, the DH has been implementing the HKCMMS project in phases to develop standards for commonly used CMM in Hong Kong to ensure their safety and quality.
In his opening remarks, the Director of Health and the Chairperson of the IAB, Dr Ronald Lam, said, "One of the key initiatives of the Government Chinese Medicines Testing Institute (GCMTI) under the DH is the implementation of the HKCMMS. With the publication of the Volume 12 of the HKCMMS, standards for 357 types of CMM have been established so far. They have become widely recognised international reference standards for Chinese medicine testing and certification, thereby promoting the high-quality scientific development of Chinese medicine. In addition, the work of GCMTI is closely aligned with national priorities. The National 15th Five-Year Plan made it clear that we need to 'advance the inheritance and innovation of Chinese medicine' and 'promote the integration of Chinese and Western medicine'. It also calls for us to 'strengthen the conservation and utilisation of Chinese medicine resources', 'improve the quality of Chinese medicine, and build up and strengthen the Chinese medicine industry'. These are exactly the goals that the HKCMMS Project is helping to achieve - by setting rigorous quality standards for CMM and conducting applied research and development on testing methods that underpin the entire industry, establishing the Hong Kong Special Administrative Region as a bridgehead for the global expansion of Chinese Medicine."
Dr Lam emphasised that the success of the HKCMMS project depends on the active collaboration of stakeholders across different sectors. He expressed his sincere appreciation to the four research partners attending the meeting, commending their dedicated contributions to advancing the project's research efforts. They were the National Institutes for Food and Drug Control, the Chinese University of Hong Kong, the Hong Kong Polytechnic University and the China Medical University. He also thanked the Government Laboratory for conducting inter-laboratory verification studies. Dr Lam emphasised that these collaborations are crucial for establishing a rigorous and solid scientific foundation for the HKCMMS and gaining international credibility. The DH is also deeply grateful to the National Medical Products Administration, the National Administration of Traditional Chinese Medicine and the Chinese Pharmacopoeia Commission for their continuous valuable advice and support in developing the HKCMMS. To align with the National 15th Five-Year Plan to advance the inheritance, innovation and high-quality development of Chinese medicine, expand and promote Chinese medicine culture, the DH will continue to steadfastly promote the development of Chinese medicine and better integrate into and serve the overall national development.
The two-day meeting brought together experts from the Chinese Mainland, Australia, Austria, Canada, Germany, Japan, Thailand, the United Kingdom and the United States, as well as representatives from research institutions, the DH and the Government Laboratory of the Hong Kong Special Administrative Region. The 16 types of CMM commonly used in Hong Kong that were discussed at the meeting included Bambusae Caulis in Taenias, Pyrolae Herba, Natrii Sulfas, Dichroae Radix, Dioscoreae Hypoglaucae Rhizoma, Cynanchi Atrati Radix et Rhizoma, Jasmini Flos, Tinosporae Caulis, Inulae Flos, Haematitum, Lasiosphaera seu Calvatia, Vespae Nidus, Dioscoreae Rhizoma, Aconiti Kusnezoffii Folium, Meliae Cortex and Tripterygii Wilfordii Radix.
Previous editions of the HKCMMS can be accessed at the website of the Chinese Medicine Regulatory Office of the DH.
DH convenes 14th Meeting of International Advisory Board on Hong Kong Chinese Materia Medica Standards Source: HKSAR Government Press Releases
DH convenes 14th Meeting of International Advisory Board on Hong Kong Chinese Materia Medica Standards Source: HKSAR Government Press Releases
DH convenes 14th Meeting of International Advisory Board on Hong Kong Chinese Materia Medica Standards Source: HKSAR Government Press Releases
