The Government extended its targeted largesse with legislation in 2021 by introducing similar tax concessions to marine (re)insurers and brokers who may now enjoy a corporate tax rate of 8.25%.

Last year, after a third round of new legislation, ship managers, ship agents and ship brokers joined a select group of maritime businesses that may benefit from a corporate tax rate slashed by 50%.

Hong Kong has consistently ranked among the best international maritime centres, often due to measures that have long been in place. For example, income earned by ship operators from the international operation of Hong Kong-registered ships (including carriage and chartering) is exempt from profits tax.

• Hong Kong offers a highly competitive tax regime for all businesses – usually a 16.5% corporate tax rate – and a 15% salary tax.
• Most shipping-related contracts and agreements are governed by English law, providing additional convenience for maritime companies to develop their business in Hong Kong.
• Hong Kong’s strategic location, its reputation as a first-class international financial centre, its legal system, and the taxation policies outlined above amount to a compelling invitation to overseas and mainland China maritime businesses not just to survive the coming challenges but to thrive here in Hong Kong.

Angad Banga, COO of The Caravel Group, the parent company of Fleet Management Limited (FLEET), one of the largest ship managers in the world, offers plaudits for the support given to commercial principals and service sectors through the structure of the generous tax incentives. 

“The tax concessions afforded to commercial principals such as ship managers definitely helps, as this specifically addresses third party ship management as a stand-alone business,” he explains. 

“The fact that these concessions are also extended to businesses within the service sectors, such as brokers, ship agents and marine insurers, to name a few, means that everyone can benefit and grow together. I firmly believe this will prompt further development of the ship management industry in Hong Kong.” 

Returning to HKMW’s role as a venue for tackling the global issues of the day, there is room to highlight just two of the organisers who have a proven track record of success at HKMW.

The Captain’s Table

Organised by the Young Professionals in Shipping Network (YSPN) in Hong Kong, The Captain’s Table is viewed by the industry as the pre-eminent maritime startup competition.

Its commitment to fostering innovation is recognised worldwide by aspiring entrepreneurs and technology creators as the platform in which to drop their disruptive concepts.

Through a live broadcast worldwide, all participants will gain precious exposure from this unique event. The winner will earn a large prize pool, including access to funding, corporate partnerships, mentorships, and free legal guidance.

Asked what the event brings to the broader table of the global maritime industry, co-founder of YPSN and The Captain’s Table Tabitha Logan remarks: “The Captain's Table is a collaborative platform showcasing startups who are developing innovative technologies and solutions to address the challenges in the industry. 

“They bring fresh perspectives and ideas, leveraging emerging technologies which can promote digitalisation, increase efficiencies, enhance safety and tackle decarbonisation. By introducing new services, products or business models we can challenge the industry to innovate and improve its offerings to clients and partners,” she adds.

Ms Logan maintains that the presence of The Captain’s Table in Hong Kong also offers long term benefits to its international maritime centre ambitions.

“Our Hong Kong ecosystem benefits from knowledge sharing and problem solving, with stakeholders able to provide their industry expertise, network and resources to the startups. By bringing more maritime services to Hong Kong we can expand our talent pool and value-added services to compete with other regional maritime centres and become a hub for maritime innovation,” she declares.

The Captain’s Table has gone from strength to strength. This year it has extended its reach to 21 countries, including countries in the Middle East, which will compete for the first time. 

Future Manning Challenges – Bridging the Gap

The Hong Kong branches of the Institute of Chartered Shipbrokers (ICS) and the Nautical Institute have joined forces to address a perennial industry concern. ICS (HK) chairman Jagmeet Makkar believes HKMW is the place to be to lead the debate.

“The Institute of Chartered Shipbrokers, Hong Kong Branch cherishes opportunities to bring members and the industry together to discuss key issues affecting the shipping industry. 

“HKMW is the most important event in the region that we look forward to participating in to promote this objective and project Hong Kong as an International Maritime Centre.”

After the success of the ICS-led event at last year’s HKMW, which met with an overwhelming response from the industry, Mr Makkar is confident that the discussion topics and the panel convened to tackle it will draw appreciative audience.

“With the future challenges in mind, the discussions will address prospective availability of crew to meet the green shipping requirements, EDI, and gender issues. We hope industry leaders are treating these challenges as opportunities for a balanced and progressive future workforce,” he says.