Profits Tax Deduction for Capital Expenditure on Environment-friendly Vehicles

Background

Environment-friendly Vehicles Categories

Approved Environment-friendly Commercial Vehicles and Environment-friendly Petrol Private Cars

   a. Vehicle Models Approved by EPD

   b. Environment-friendly Vehicles Certificates

Hybrid Vehicles and Electric Vehicle

Enquiry

 

Profits Tax Deduction for Capital Expenditure on Environment-friendly Vehicles

Starting from 18 June 2010, businesses which have purchased eligible environment-friendly vehicles may deduct the capital expenditure incurred under profits tax. The new tax concession is applicable in the year of assessment 2010/11 and thereafter.

 

Environment-friendly Vehicles Categories

This tax concession covers the following three categories of environment-friendly vehicles:

1. environment-friendly vehicles under the "Tax Incentives Scheme for Environment-friendly Commercial Vehicles" and "Tax Incentives Scheme for Environment-friendly Petrol Private Cars" ^{Note 1} administered by the Environmental Protection Department ( "EPD") (hereinafter referred to as "Approved Environment-friendly Commercial Vehicles and Environment-friendly Petrol Private Cars");
2. hybrid vehicles; and
3. electric vehicles.

Note 1: The Tax Incentives Scheme for Environment-friendly Petrol Private Cars was terminated on 1 April 2015

 

Approved Environment-friendly Commercial Vehicles and Environment-friendly Petrol Private Cars

 

Vehicles Approved by EPD ^{note 2}

Eligible environment-friendly vehicles approved by EPD as at 18 June 2010:

Table 1 : Environment-friendly Commercial Vehicles

Table 2 : Environment-friendly Petrol Private Cars

Eligible environment-friendly vehicles approved by EPD as at 31 March 2011:

Table 3 : Environment-friendly Commercial Vehicles

Table 4 : Environment-friendly Petrol Private Cars

Eligible environment-friendly vehicles approved by EPD as at 31 March 2012:

Table 5 : Environment-friendly Commercial Vehicles

Table 6 : Environment-friendly Petrol Private Cars

Eligible environment-friendly vehicles approved by EPD as at 31 March 2013:

Table 7 : Environment-friendly Commercial Vehicles

Table 8 : Environment-friendly Petrol Private Cars

Eligible environment-friendly vehicles approved by EPD as at 31 March 2014:

Table 9 : Environment-friendly Commercial Vehicles

Table 10 : Environment-friendly Petrol Private Cars

Eligible environment-friendly vehicles approved by EPD as at 31 March 2015:

Table 11 : Environment-friendly Commercial Vehicles

Table 12 : Environment-friendly Petrol Private Cars

Eligible environment-friendly vehicles approved by EPD as at 31 March 2016:

Table 13: Environment-friendly Commercial Vehicles 

Eligible environment-friendly vehicles approved by EPD as at 31 March 2017:

Table 14: Environment-friendly Commercial Vehicles 

Eligible environment-friendly vehicles approved by EPD as at 31 March 2018:

Table 15: Environment-friendly Commercial Vehicles 

Eligible environment-friendly vehicles approved by EPD as at 31 March 2019:

Table 16: Environment-friendly Commercial Vehicles 

Eligible environment-friendly vehicles approved by EPD as at 31 March 2020:

Table 17: Environment-friendly Commercial Vehicles 

Eligible environment-friendly vehicles approved by EPD as at 31 March 2021:

Table 18: Environment-friendly Commercial Vehicles 

Eligible environment-friendly vehicles approved by EPD as at 31 March 2022:

Table 19: Environment-friendly Commercial Vehicles 

Eligible environment-friendly vehicles approved by EPD as at 31 March 2023:

Table 20: Environment-friendly Commercial Vehicles

Eligible environment-friendly vehicles approved by EPD as at 31 March 2024:

Table 21: Environment-friendly Commercial Vehicles

Note 2: The qualifying standards for the above tax incentives scheme will be reviewed annually in the light of technological development and the prevailing statutory emission standards. Profits tax deduction for capital expenditure on environment-friendly vehicles is determined on the date of purchase. If eligible vehicles under this scheme would like to obtain the first registration concessions under the "Tax Incentives for Environment-friendly Commercial Vehicles", the vehicles must comply with the prevailing qualifying standards on the date of first registration.

 

Environment-friendly Vehicles Certificates

EPD will issue environment-friendly vehicle certificates to eligible vehicles under the "Tax Incentives Scheme for Environment-friendly Commercial Vehicles". Businesses which purchase vehicles belonging to these categories after commencement of this new tax concession should obtain copy of the environment-friendly vehicle certificates from vehicle dealers for tax filing purposes.

If a business could not obtain the environment-friendly vehicle certificate (e.g. second-hand vehicle or eligible environment-friendly vehicle purchased before commencement of the new tax concession, vehicle owner may seek verification from EPD by completing and returning the following application form.

(Application form)

 

Hybrid Vehicles and Electric Vehicles

Hybrid vehicles and electric vehicles are eligible environment-friendly vehicles under the new tax concession. The hybrid vehicles and electric vehicles currently available in the Hong Kong market are shown below:

Table a : Hybrid Vehicles

Table b : Electric Vehicles

 

Enquiry

EPD (for enquires about the eligible environment-friendly vehicles)

Tel: 2594 6392

Fax: 2824 9361

Address: Revenue Tower, Wanchai, Hong Kong Environmental Protection Department Mobile Source Group

 

Inland Revenue Department (for enquires about the profit tax deduction for capital expenditure on environment-friendly vehicles)

Tel: 187 8088

Address: Inland Revenue Centre, 5 Concorde Road, Kai Tak, Kowloon, Hong Kong

Website: http://www.ird.gov.hk/eng/faq/efv.htm