Tax concessions for brokers

Asia

The Singapore government has offered a concessionary rate of tax to insurance and reinsurance brokers for a period of 10 years. The purpose is to ensure that Asian headquarters of international brokers remain in Singapore in the face of competition from cities like Hong Kong and Shanghai. The concessionary tax rate of will only be applicable to fees and commissions earned by brokers on business sourced outside of Singapore. Most international insurance and reinsurance brokers already have a presence in Singapore. But the rapid growth of the Chinese market in recent years is causing some companies to consider shifting their Asian head offices to Hong Kong or Shanghai, which is what Singapore wants to stop. The Singapore offices of international brokers have managed to attract a lot of businesses from other Asian countries in recent years. This is an important reason for the high growth of insurance business revenue in Singapore. The Life Insurance Association in the city reported 30% growth in new premium income in 2007 and an impressive overall growth in all segments of the life business.