Hong Kong – 19 September 2018, CALC (the “Group”, SEHK stock code: 01848), a full value-chain aircraft solutions provider for global airlines, is pleased to announce that the Group has successfully delivered its first aircraft under the new tax regime through Hong Kong leasing platform.
Mr. CHEN Shuang, JP, Chairman of CALC and Chairman of Hong Kong Aircraft Leasing and Aviation Finance Association, said, “We are deeply honored to extend Hong Kong as one of our major leasing platforms. The Hong Kong government has taken a significant, yet pragmatic step in taking forward the initiatives for developing aircraft leasing and aviation finance business in the region. As a global financial centre and international aviation hub, Hong Kong is in an extremely favorable position to thrive in the international sky. Hong Kong, under 'one country two systems', is uniquely placed to tap into the opportunities amid China actively spearheading major national initiatives for international business connections, including the Greater Bay Area initiatives.”
Mr. Mike POON, Chief Executive Officer of CALC, added, “The successful delivery marks the first time CALC, as a Hong Kong-based lessor, enjoys the concessionary tax benefits under the new tax scheme. We are proud that CALC is playing an active role in Hong Kong's aspiration in developing into an aviation financing hub. As Asia’s first listed aircraft lessor, CALC, will lease more aircraft to global airlines through Hong Kong going forward, to show our commitment and dedication in promoting the development of aircraft leasing and aviation finance industry in Hong Kong.”
CALC has been working closely with the Hong Kong government authorities since 2011 to promote the city in becoming an international aircraft leasing and aviation finance hub. In August 2017, CALC completed an aircraft transaction through a Hong Kong leasing vehicle, making its first attempt in putting Hong Kong leasing platform into effective use. By completing its first aircraft delivery under the City’s new tax regime, the Group has taken a major move further to extend its leasing platforms on top of its existing Dublin, Tianjin DFTP and Shanghai ones.
CALC joined hands with leading industry players to establish Hong Kong Aircraft Leasing and Aviation Finance Association in June 2017, exchanged views with the Financial Services Development Council (FSDC) to publish an industry paper - “Recommendations for Developing Hong Kong as an Aircraft Leasing and Financing Hub” in July 2017, and shared its ideas with the Stock exchange of Hong Kong to exempt aircraft leasing activities, including aircraft leasing and acquisitions and disposals of aircraft, from its notifiable transaction rules last year. The Exchange published conclusions on exempting such aircraft leasing activities in August 2018 and the amendment will be effective on 15 October 2018.
Hong Kong’s Inland Revenue (Amendment) (No.2) Bill 2017 was passed by the Legislative Council on 28 June 2017, creating a concessionary tax regime that reduces the corporate tax rate of qualifying aircraft lessors and aircraft leasing managers. The passage of the new tax regime is a reflection of the joint effort of the industry and the HKSAR government to create a favorable aircraft leasing environment in the city.