WHAT’S NEW

“Enhanced shipping tax concessions and new physical commodity trading incentive – sparking new momentum for Hong Kong’s maritime services”

The Hong Kong Maritime and Port Development Board (“the HKMPDB”) welcomes the Government’s gazettal of the Inland Revenue (Amendment) (Tax Concessions for Shipping-related Activities and Physical Commodity Trading) Bill 2026 (“the Bill”) today (12 June).

The Bill delivers two key highlights: it enhances the existing tax concessions for shipping-related activities, and introduces a new half-rate tax concession regime for physical commodity trading. Specifically, it also ensures compliance with the latest international tax rules under BEPS 2.0. By keeping Hong Kong’s preferential tax regimes competitive post-BEPS 2.0, the Bill will sustain the development momentum of our high value-added maritime services industry, answering industry calls to strengthen the local maritime services ecosystem.

Dr Moses Cheng, Chairman of the HKMPDB, said, “We are pleased to see that the Government has positively responded to the industry’s needs with a forward-looking vision and a package of carefully designed measures. Amid a complex and ever-changing international geopolitical environment and trade landscape, the Bill will give a real boost to Hong Kong’s maritime services industry, a core pillar of our international maritime centre status, supported by a vibrant maritime services cluster comprising around 1,200 port and maritime-related companies.”

Notably, the dedicated preferential tax regime for physical commodity trading is a game-changer, injecting fresh momentum into Hong Kong’s high value-added maritime services sector. Physical commodity trading accounts for more than half of global shipping volume, and commodity traders are themselves an integral part of the maritime services ecosystem. By attracting more commodity traders to establish their presence in Hong Kong, we will ignite greater demand for a wide range of high-value maritime services in Hong Kong and unleash substantial growth opportunities for our economy.

Drawing on his experience of leading a HKMPDB delegation to Geneva for Geneva Dry, an annual conference of the world’s premier global commodity traders, in late April this year, Dr Cheng added, “During this promotional visit to Geneva, I met first-hand with key industry players from the shipping and commodity trading sectors, and they warmly welcomed the proposed new tax concessionary regime for physical commodity trading as a very attractive measure. I sincerely hope that the Legislative Council will pass the Bill swiftly in response to the industry’s call.”

Taken together, these measures will fuel Hong Kong realisation of its aspiration to become a “Global Maritime Capital”. The HKMPDB looks forward to continuing its close collaboration with the Government to catalyse these timely initiatives into tangible benefits for the industry. Together, we will build a more resilient and competitive maritime ecosystem, standing as a stable and reliable anchor amidst global uncertainties, and further consolidating Hong Kong’s status as a leading international maritime centre.