IRD: Tax Deductions for Leased Premises Reinstatement and Allowances for Buildings and Structures

Oct 23, 2024

Following the submission of a paper by the Financial Services and the Treasury Bureau to the Legislative Council (LegCo) in May 2024, the Inland Revenue (Amendment) (Tax Deductions for Leased Premises Reinstatement and Allowances for Buildings and Structures) Bill 2024 was gazetted on 18 October 2024. This Bill introduces two significant enhancements:

1. A new profits tax deduction for reinstatement costs related to leased premises.

2. The removal of the time limit for claiming annual allowances on commercial and industrial buildings or structures (collectively known as “CBA/IBA”).

Pending the passage of the Bill, these enhancements will take effect from the 2024/25 year of assessment. For more details, please visit the IRD's website:

https://www.ird.gov.hk/eng/tax/bus_rabs.htm