Fri, Oct 03, 2014 - Page 13 News List

Cabinet approves offshore insurance

By Crystal Hsu  /  Staff reporter

The Cabinet yesterday approved deregulation plans that would allow domestic life insurers to sell policies to Chinese clients through their offshore units.

The Cabinet gave its go-ahead after trimming proposed tax breaks for offshore insurance units (OIU) to 10 years, from 15 years as suggested by the Financial Supervisory Commission (FSC).

The relaxation, which still needs to clear the legislature, would allow domestic insurers to tap offshore insurance markets now that the nation’s banks and securities houses can reach out to clients across the Taiwan Strait via their offshore banking and securities units.

The Cabinet agreed to spare OIUs from business tax, corporate income tax and stamp tax for 10 years, to encourage new business.

Taiwan’s OIUs would enjoy more favorable taxation terms compared with their peers in Hong Kong and Singapore once the easing goes into practice, the FSC said in a statement.

The figures suggest ample wealth management business opportunities for OIUs, which may offer life insurance, property insurance and reinsurance policies to Chinese customers once they set foot on Taiwanese soil, Tseng said.

The Cabinet promised to extend the tax exemptions if necessary and put the FSC in charge of coordination with the lawmaking body.

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