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Hong Kong: Draft legislation granting tax deduction for lease reinstatement costs, removing time limit for claiming building allowances

Bill will be introduced into the Legislative Council on October 30, 2024

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October 21, 2024

Consistent with the previous announcement in the 2024/2025 budget speech, the government on October 18, 2024, published draft legislation—the Inland Revenue (Amendment) (Tax Deductions for Leased Premises Reinstatement and Allowances for Buildings and Structures) Bill 2024granting a tax deduction for reinstatement costs incurred for leased premises and removing the time limit for claiming the commercial building allowance (CBA) and industrial building allowance (IBA).

The bill will be introduced into the Legislative Council on October 30, 2024.

The Inland Revenue Department (IRD) on October 18, 2024, also released its guidance on the two proposed profits tax relief measures.


For more information contact a KPMG tax professional:

David Ling | davidxling@kpmg.com

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