Hong Kong Tax News Flash

Mar 2017, Issue 4

Hong Kong ready for the buoyant aircraft leasing market with the new tax regime

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.

Contact us

Charles Lee

China South and Hong Kong Tax Leader, PwC Hong Kong

Tel: +[852] 2289 8899

Florence Yip

Asia Pacific Tax Leader Financial Services, Asset & Wealth Management, PwC Hong Kong

Tel: +[852] 2289 1833

Catherine Tsang

Partner, PwC Hong Kong

Tel: +[852] 2289 5638

Clarence Leung

Partner, Asset Finance and Leasing, PwC Hong Kong

Tel: +[852] 2289 3599

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