The government in Hong Kong has proposed a new tax regime applicable to certain ship leasing activities.
Under the proposed legislation, the tax rate on the profits of qualifying ship lessors will be 0%. For leasing managers, a 0% tax rate applies where services are provided to an associate, while a tax rate of 8.25% applies on profits from services provided to non-associates.
The new tax regime is expected to apply on income earned from 1 April 2020.
KPMG Hong Kong has summarised the main features of the proposed tax regime for ship leasing in the newsletter below:
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