Hong Kong government introduces concessionary tax regime for certain aircraft leasing activities
Hong Kong government introduces concessionary tax...
Hong Kong Tax Alert - Issue 10, May 2017
The main benefits of the concessionary tax regime for certain aircraft leasing activities are:
- Aircraft leasing income earned by “qualifying aircraft lessors” will be taxed at 1.65% of net rental receipts; and
- a concessional tax rate of 8.25% will apply to “qualifying aircraft leasing management activities”.
Overall, the new regime is a welcome change as Hong Kong should now be economically competitive with other leasing locations such as Ireland and Singapore. This is especially true where the lessee is resident in a jurisdiction with which Hong Kong has a favourable tax treaty such as the PRC, Japan and Russia.
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