Inland Revenue (Amendment) (Aircraft Leasing Tax Concessions) Bill 2023 gazetted
The Bill amends the Inland Revenue Ordinance (Cap. 112) with proposed legislative amendments covering the following aspects:
The Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area advocates leveraging Hong Kong's strengths in financial and logistics services to develop high-value added cargo, aircraft leasing and aviation financing services. The report to the 20th National Congress of the Communist Party of China supports Hong Kong to give full play to its strengths and distinctive features and to consolidate and elevate its international position in such fields as finance, trade, shipping and aviation. There have been noticeable market changes in the global aircraft leasing industry in recent years due to reasons including the pandemic. The upcoming implementation of international tax reform proposals drawn up by the OECD (commonly known as BEPS 2.0) will also diminish the competitiveness of the Regime. The Regime needs to keep pace with market changes and international tax reforms to retain the existing aircraft leasing businesses and the associated tax revenue and economic benefits as well as capturing a larger global market share, the spokesman added.
Upon the passage of the Bill, the legislative amendments will take retrospective effect from the year of assessment beginning on April 1, 2023, to allow the early implementation of the enhancement measures.
The Bill will be introduced into the Legislative Council for first and second readings on November 29.