Pension Planning

Hong Kong is not considered a “tax haven” and therefore enjoys a deserved reputation for business and financial legitimacy. Jurisdictions which attempt to hide assets through private registries and obstructive procedures are justifiably targeted by foreign authorities and have little relevance to legitimate pension planning and management. Hong Kong, conversely, provides an established, straightforward, low-tax system that attracts legitimate and transparent pension planning for both international and local clients.

Hong Kong’s Occupation Retirement Scheme Ordinance (ORSO) is a government regulated retirement regime available to residents and non-residents of Hong Kong. The ORSO makes it possible for individuals to establish a retirement plan that has the result that no estate duty, no wealth tax, no capital gains tax, no withholding tax, no VAT, and no annual net income tax is attributed to the pension member. These significant positive tax implications are derived from Hong Kong’s premium on low taxes, a free market and an almost unfettered capacity for investment.

The ORSO maximizes the return on members’ wealth by avoiding double-taxation regulations, overlapping taxes, and unnecessary administrative and regulatory fees. Importantly, the regime offers flexibility and freedom of investment by including the widest range of investment class and asset location. In addition, in the unfortunate event of the pension member’s death, the estate is effectively distributed to desired recipients with ultimate tax efficiency. These savings on estate succession, combined with the greater possibilities for investment, make the ORSO a unique retirement essential.

Weir & Associates encourages its clients to take advantage of Hong Kong’s ORSO. There may be little that is more frustrating than losing large parts of an estate to the government for the sole reasons of mismanagement, poor planning, and a misunderstanding of tax law. The options under the ORSO make it possible to efficiently manage your financial estate and avoid many of the common crucial mistakes made in everyday pension planning.