Feedback on enhancements on aircraft leasing preferential tax regime sought
The government proposed five changes to the regime.
The Transport & Logistics Bureau will invite industry experts to comment on the proposed enhancements to the aircraft leasing preferential tax regime.
Amongst those invited to give feedback include aircraft lessors, aircraft leasing management companies, professionals from trade-related sectors such as accounting, finance and legal personnel as well as relevant trade associations.
They can send their feedback via email until 19 December.
The government’s proposals include the provision of a tax deduction on the acquisition cost of aircraft; expansion of the scope of lease and aircraft leasing activities; deduction of interest payable on money raised to finance the aircraft acquisition; introduction of a threshold requirement to comply with Organisation for Economic Co-operation & Development (OECD) requirements; and specification of the leasing model involving the use of a bare trust.
The bureau said these five measures “aim to enhance the competitiveness of Hong Kong in view of the rapid market changes over the past few years and taking into account the international tax reform spearheaded by the OECD on base erosion and profit shifting.”