Bill Seeks to Amend Hong Kong's Debt Tax Concessions

Hong Kong's Inland Revenue (Amendment) Bill 2011 seeks to amend the Inland Revenue Ordinance to extend the 50% concessionary rate of profits tax to qualifying debt instruments (QDIs) with a tenor of less than three years.


Currently, interest or any other gain from QDIs with a maturity period of between three and seven years are eligible for a 50% concession on profits tax, while those with a maturity period of seven years and above qualify for a 100% concession.


With the enhancements, Hong Kong hopes to attract overseas debt issuers, promote the further development of the local debt market, strengthen the competitiveness of Hong Kong in comparison with other financial centres in the region, and enhance Hong Kong's status as an international financial centre.





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