The HKSAR Government gazetted the Inland Revenue (Amendment) (No.2) Bill 2017 on 10 March 2017. The Bill seeks to: (i) introduce a concessionary profits tax rate of 8.25% for the assessable profits derived from qualifying aircraft leasing activities and qualifying aircraft leasing management activities carried out in Hong Kong; (ii) deem the taxable amount of profits derived by a qualifying aircraft lessor from leasing of aircraft to a non-Hong Kong aircraft operator to 20% of the gross lease payments less deductible expenses, excluding tax depreciation allowance; and (iii) introduce various qualifying conditions for the above concessionary tax treatment and certain anti-abuse rules.
The Bill will be introduced into the Legislative Council (LegCo) on 22 March 2017 and subject to the approval of the LegCo before enacted into law. Once enacted, the concessionary tax regime is expected to apply from year of assessment 2017/18.
China South and Hong Kong Tax Leader
Tel: + 2289 8899
Asia Pacific Tax Leader Financial Services, Asset & Wealth Management
Tel: + 2289 1833
Tel: + (755) 8261 8383
Partner, Asset Finance and Leasing
Tel: + 2289 3599