Hong Kong will soon introduce one-off and accelerated tax cuts for environment-friendly machinery and installations, the Hong Kong Special Administrative Region (HKSAR) government said Saturday.
"A 100-percent deduction under profits tax will be provided in the year of purchase for the capital expenditure incurred on the provision of eligible machinery," a government spokesman said, referring to the tax cuts proposal.
The amendments will be made to the tax law upon the passing of a Revenue Bill by the Legislative Council, the HKSAR government said in a statement.
Environmental protection machinery includes low noise construction machinery or plant registered under the Quality Powered Mechanical Equipment system, certain waste treatment, wastewater treatment and air pollution control machinery or plant.
"A deduction under profits tax for 20 percent of the capital expenditure incurred on the construction of eligible installations will be provided in each of the five years starting from the year of acquisition," the spokesman said.
Environmental protection installations, mainly renewable energy installations, include solar photovoltaic installations, wind turbine installations, thermal waste treatment installations, and certain energy efficient building installations.
The reductions will also be available to those who own or have been using environmental protection machinery or installations before implementation of the proposal, according to the HKSAR government statement.
(Xinhua News Agency April 28, 2008)
