The Hong Kong Inland Revenue Department has announced the passage of the Inland Revenue (Amendment) (No. 5) Bill 2018 by the Legislative Council on 14 November 2018. The bill includes tax concessions announced as part of the Budget 2018-19 that generally apply from 1 April 2018.
One of the main measures of the bill is a tax concession allowing for a full deduction of capital expenditure on environmental protection installations in one year instead of over five years. Environmental protection installations include energy efficient building installations and renewable energy installations such as solar, wind, etc.
The bill also provides for an extension of the scope of the exemption under the Qualifying Debt Instrument (QDI) Scheme. This includes that interest, gains, or profits from QDIs of any maturity may qualify for a full exemption instead of just those with a maturity of at least seven years. Further, debt instruments listed on the Stock Exchange of Hong Kong Limited may be qualified for tax exemption, in addition to instruments lodged with and cleared by the Central Moneymarkets Unit of the Hong Kong Monetary Authority.
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