The concessionary tax regime for certain aircraft leasing activities was enacted on 28 June 2017, and the new rules will apply from the 2017/18 year of assessment.
This legislation is a welcome development because it will enable Hong Kong to take its place on the world stage as one of the premier locations for basing aircraft leasing activities.
As with any new law, there are certain details that will need to be resolved as lessors look to apply the law in practice. The Hong Kong Inland Revenue Department has indicated that it will provide guidance on the application of the new regime through a Departmental Interpretation and Practice Note.
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