Research On Hong Kong Tax Regime Applicable To Shipping Industry

Since global financial crisis triggered in 2008 followed by the downturn of international shipping market, some international shipping activities have been shifted from Europe and America to Asia in which Hong Kong has been involved in a more important role than before. Apart from Hong Kong's favorable geographical location, Hong Kong was developed as a modern and significant international shipping centre in a fast pace because of its free and open economic, trade and financial policies applied under its liberal economy system and also its simple, fair and low-tax shipping tax system. In view of ongoing globalization, in order to continually sustain in intensive competition in the shipping industry, how to improve and enhance the competitiveness of taxation system for shipping industry, will become a worth topic for research and study. This paper will aim to have an in-depth overview on current Hong Kong tax regime applicable to shipping industry. Through comparison to international shipping tax system, this paper will summarize the competitive advantages of Hong Kong tax regime applicable to shipping industry and aim to comment on the improvement of tax regime applicable to shipping industry in Hong Kong.The author has over ten years of working experience at finance and accounting for shipping industry in Hong Kong. The exposures of international tax planning for major shipping enterprises and auditing for shipping clients in professional accounting firm probably build up the foundation for the research and study of this topic. The paper will be conducted by research methods such as studying relevant papers, applying theories, analyzing case studies and comparison. Through understanding of key contents and characteristics of Hong Kong tax regime applicable to shipping industry, this paper will aim to have an overview on the legal framework, main ordinances, basis, requirements and real application of Hong Kong shipping tax system. With reference to international comparison, this paper will try to investigate the ways to improve our current tax system for shipping industry in Hong Kong.