2011-03-24-KPMG_China-香港税务局修订税务条例释义及执行指引第5号_以加入环保设施作为可扣除利得税的开支_2页_106kb

Summary of IRD DIPN No. 5 Revised March 2011

• Revised DIPN No. 5 issued by Inland Revenue Department (IRD) includes details on deductions for environmental protection facilities.

• Background: Sections 16H-16K of Inland Revenue Ordinance introduced deductions for specified capital expenditure on environmental protection machinery and installations, effective from year of assessment 2008/09.

• From year of assessment 2010/11, deductions extended to include environment-friendly vehicles.

• Deduction allowances:

  • Full deduction allowed for capital expenditure on environmental protection machinery or environment-friendly vehicles, incurred in the year of assessment.
  • Capital expenditure on environmental protection installation is permitted as a deduction in five equal instalments.

• Resources to ascertain qualification: Environmental Protection Department (EPD) and Electrical and Mechanical Services Department (EMSD) websites.

• DIPN is available online at: http://www.ird.gov.hk/eng/pdf/e_dipn05.pdf