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Insurance Companies Ordinance : Insurance
Business Classes G and H
The Insurance Companies Ordinance (Cap 41) ("ICO") was
amended in 1993 to include retirement scheme management categories
I and II as Classes G and H respectively under Long-term Business
in Part 2, Schedule 1 of the ICO. It has been the Department's practice
to assess income arising from such a business under section 23A
of the Inland Revenue Ordinance ("IRO").
Following a recent review of this matter, it has been concluded
that income arising from a business falling within Classes G and
H is not assessable under section 23A of the IRO.
Instead, any business transacted under these two Classes is assessable
under section 14 of the IRO. This reflects the position that a contract
for a retirement scheme under Class G or Class H is not a contract
of insurance because it does not have as its principal object the
provision of insurance.
With effect from the year of assessment 2005/06, income arising
from a business under Classes G and H will be assessable under section
14 of the IRO.
It is not proposed to disturb assessments made under section 23A
of the IRO in respect of Classes G and H for years of assessment
prior to 2005/06.
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