The Legislative Council has passed the “Inland Revenue (Amendment) (No. 2) Bill 2017”, which includes reductions in profits tax for aircraft leasing companies. CALC (SEHK stock code: 01848) welcomes the decision.
Mr. Mike POON, Chief Executive Officer of CALC, commented:
This is an important first step towards establishing Hong Kong as an international aircraft leasing hub and aviation financing hub. The new tax regime will support the development of Hong Kong’s aircraft leasing industry and attract international lessors and leasing-related businesses to Hong Kong. As the first aircraft lessor listed in Asia, CALC has developed into a full value-chain aircraft solutions provider. Leveraging its expertise and past experience, CALC has, through different channels, worked with the industry to relay to the government the industry’s needs since 2011. We hope to play a role in facilitating Hong Kong to become an international aircraft leasing hub. The passage of the new tax regime is a reflection of the joint efforts of the industry and the government. Apart from the existing Dublin, Tianjin and Shanghai platforms, CALC will consider extending its leasing platforms to Hong Kong.
We believe that the new tax regime will make use of the advantages Hong Kong has in the financial and aviation industries. We also think the move will support the “One Belt One Road Initiative” and showcase the uniqueness of Hong Kong’s “One Country, Two Systems” model, especially the city’s strong legal system for using common law in international trades. We believe that with the revision of the tax code, the Hong Kong government will be able to emulate and catch up with Singapore and other aircraft leasing hubs. The move will also provide leasing companies from around the globe with more locations to operate from aside from the Republic of Ireland and Singapore.