Hong Kong Gazettes Tax Breaks For Ship Leasing
The Hong Kong Government has published in the Gazette legislation to provide profits tax concessions to certain ship lessors and ship leasing managers.
The Inland Revenue (Amendment) (Ship Leasing Tax Concessions) Bill 2020 would amend the Inland Revenue Ordinance (Cap. 112). It would provide profits tax concessions to qualifying ship lessors, at a zero percent profits tax rate, and to qualifying ship leasing managers, generally at an 8.25 percent profits tax rate.
A spokesperson for the Transport and Housing Bureau said the changes would "help enhance Hong Kong's position as a ship leasing centre in the Asia-Pacific region" and be "conducive to the growth of our shipping core and maritime cluster since ship leasing facilitates ship ownership and operation."
The legislation also contains anti-abuse provisions.
The bill will be introduced to the Legislative Council on February 12.