Tax regime for ship leasing and ship leasing management
Circular Ref: A(20)226
Issue Date: 08 Dec 2020
Subsequent to the previous Association circulars on the captioned subject, we have received further member enquiries about the interpretation of the legislation and the scope of the new tax regime, including the “Group” concept under the threshold requirements. (Briefly, ship leasing companies must have two full-time employees and operating expenditure of USD1 million per year to qualify for the new (0%) tax rate, and ship leasing management companies must have one full-time employee and operating expenditure of HKD1 million per year to qualify for the new (8.25%) tax rate.)
We have consulted the government on member enquiries. Please find attached a summary of the (latest) government advice.
I would like to draw your attention that as with the previous documents prepared by the Association, this summary note is intended for your reference only. While the Association will continue to help members address their common issues of concern, you are strongly advised to seek your own expertise views and guidance on this subject matter, as and where necessary.