The Inland Revenue Department (“the IRD”) issued a practice note providing guidance on the recent amendments made to the Inland Revenue Ordinance (“the Ordinance”) with respect to Qualifying Corporate Treasury Centres (“QCTC”). The IRD has clarified a number of areas relating to the QCTC regime and the interest deduction provisions under the Ordinance. While some of the IRD’s comments are helpful, the provisions remain complex and could impact the usefulness of the QCTC  initiative. This tax alert summarises the key comments on the IRD’s practice note and how companies can benefit from the QCTC initiative.