Is life assurance defined in Hong Kong?
No. There is no statutory definition in the Insurance Companies Ordinance (ICO) which governs insurance in Hong Kong.
What does this mean for Royal Skandia products?
Other than redemption bonds, our products may be recognised as life assurance contracts under the general law definition: ‘any contract which provides a defined payment on death.’
Investment linked life insurance policies are treated by the regulators as collective investment schemes and must be approved by the Securities and Futures Commission (SFC) before they can be sold in Hong Kong.
Is there a difference in the taxation of a resident national and a resident foreign national?
No.
The following questions are answered on the basis of a policy being regarded as a life assurance policy and the policy is one issued by a branch of a foreign insurer.
How is the tax calculated for our products during the lifetime of the policyholder?
Proceeds taken from, and transactions made on, life assurance policies are not subject to tax.
How is tax calculated on the death of the policyholder?
There is no liability to tax on death. Estate duty was abolished in the 2005/2006 tax year.
Are there any exemptions or reliefs which apply for any of the local taxes?
No. There are no exemptions or reliefs which apply for any of the local taxes.
Are trusts recognised in Hong Kong?
Yes. Trust Law is very similar to that in England and Wales.
The information provided in this article is not intended to offer advice.
It is based on Skandia's interpretation of the relevant law and is correct at the date at the top of the article. While we believe this interpretation to be correct, we cannot guarantee it. Skandia cannot accept any responsibility for any action taken or refrained from being taken as a result of the information contained in this article.