Taxation 稅項

Normal Hong Kong Tax Treatment 香港的通常稅務待遇

Capital gains tax is a tax on gains of a capital nature. Hong Kong does not levy this tax, so an increase in an investment's value does not itself create a Hong Kong capital gains tax liability. [Inland Revenue Department guidance](https://www.ird.gov.hk/eng/tax/bus_taxcertainty.htm)

For investment-linked policies, returns produced by the underlying investment funds are normally not taxable in Hong Kong. Retain the qualification 'normally': the usual treatment should not be presented as a guarantee of exemption in every situation. [IA Paper V Study Notes, section 4.12](https://www.ia.org.hk/en/supervision/reg_ins_intermediaries/files/P5_SN_2024_eng.pdf#page=111)

Different Tax Laws for Overseas Residents 海外居民可能面對不同稅法

An overseas resident may also fall within their own country's tax laws, which can be very restrictive. Returns that are normally not taxable in Hong Kong cannot therefore be assumed to receive the same treatment elsewhere. [IA Paper V Study Notes, section 4.12](https://www.ia.org.hk/en/supervision/reg_ins_intermediaries/files/P5_SN_2024_eng.pdf#page=111)

For example, an overseas resident buying an investment-linked assurance scheme from a Hong Kong insurer cannot determine their own country's tax treatment merely from the insurer's location. Possible exposure to overseas tax laws also does not mean that every overseas resident will necessarily owe tax.

Obtaining Independent Tax Advice 自行徵詢獨立稅務意見

Prospective policyholders should be advised to obtain their own independent tax advice about their circumstances. An intermediary's explanation of the usual Hong Kong treatment does not replace that individual advice; particularly for an overseas resident, Hong Kong's absence of capital gains tax is insufficient grounds for promising that no tax will be payable. [IA Paper V Study Notes, section 4.12](https://www.ia.org.hk/en/supervision/reg_ins_intermediaries/files/P5_SN_2024_eng.pdf#page=111)