### Inland Revenue Ordinance 《稅務條例》

14II. Consideration for disposal of aircraft etc. to be regarded as trading receipts of corporation—aircraft in respect of which section 14I has not applied for year of assessment beginning on or after 1 April 2023
(1) This section applies to a corporation if—
(a) section 14IB applies to the corporation for a year of assessment in relation to an aircraft;
(b) the application of that section to the aircraft is not because of an election made under section 14IA(1)(e); and
(c) either or both of the following events occur in a year of assessment beginning on or after 1 April 2023—
(i) any insurance money or other compensation is accrued to the corporation in relation to the aircraft;
(ii) the aircraft is disposed of by the corporation.
(2) This section also applies to a corporation if—
(a) section 14IB applies to the corporation for a year of assessment in relation to an aircraft because of an election made under section 14IA(1)(e);
(b) section 14I has not applied to the corporation in relation to the aircraft for any year of assessment beginning on or after 1 April 2023; and
(c) either or both of the following events occur in a year of assessment beginning on or after 1 April 2023—
(i) any insurance money or other compensation is accrued to the corporation in relation to the aircraft;
(ii) the aircraft is disposed of by the corporation.
(3) Despite the exclusion relating to the sale of capital assets in section 14, each of the following amounts in relation to an aircraft to which this section applies (specified aircraft

14IJ. Consideration for disposal of aircraft etc. to be regarded as trading receipts of corporation—aircraft in respect of which section 14I has applied for year of assessment beginning on or after 1 April 2023
(1) This section applies to a corporation if—
(a) section 14IB applies to the corporation for a year of assessment in relation to an aircraft (specified aircraft

### Inland Revenue Ordinance 《稅務條例》

14IL. Calculation of net lease payments for right to use aircraft under operating lease: subleasing of aircraft
(1) This section applies to a corporation for a year of assessment (particular year

14IM. Calculation of net payments of finance charges or interest for funding leases
(1) This section applies to a corporation for a year of assessment if section 14H(1) applies to the corporation, for that year of assessment, in relation to its assessable profits that are derived from the qualifying aircraft leasing activity relating to a funding lease of an aircraft.
(2) The assessable profits of the corporation that are derived from the qualifying aircraft leasing activity carried out in relation to a funding lease of an aircraft for a year of assessment (particula

### Inland Revenue Ordinance 《稅務條例》

14J. Concession for qualifying aircraft leasing manager
(Amended 10 of 2022 s. 2)(1) For the purposes of this Part and subject to subsections (5) and (7) and section 26AB, the assessable profits of a corporation that is a qualifying aircraft leasing manager for a year of assessment are chargeable to tax under this Part at one-half of the rate specified in Schedule 8 to the extent to which those profits are assessable profits derived from its qualifying aircraft leasing management activity. (Amended 27 of 2018 s. 29)
(2) A corporation is a qualifying aircraft leasing manager for a year of assessment if—
(a) in the basis period for that year of assessment, it is not an aircraft operator; and
(b) for that year of assessment—
(i) it satisfies the conditions specified in subsection (3);
(ii) it satisfies the safe harbour rule under section 14K; or
(iii) it has obtained the Commissioner’s determination under section 14L(1).
(3) For the purposes of subsection (2)(b)(i), the conditions are that, in the basis period for the year of assessment, the corporation—
(a) has carried out in Hong Kong one or more qualifying aircraft leasing management activities; and
(b) has not carried out in Hong Kong any activity other than a qualifying aircraft leasing management activity.
(4) For the purposes of subsection (3)(b), in determining whether a corporation has carried out any activity other than a qualifying aircraft leasing management activity, only activities that generate income to the corporation are to be taken into account.
(5) Subsection (1) applies to a corporation for a year of assessment only if—
(a) in that year of assessment—
(i) the central management and control of the corporation is exercised in Hong Kong;
(ii) the activities that produce its qualifying profits in that year are—
(A) carried out in Hong Kong by the corporation; or
(B) arranged by the corporation to be carried out in Hong Kong; and
(iii) those activities are not carried out by a permanent establishment outside Hong Kong; and
(b) the corporation has elected in writing that subsection (1) applies to it.
(6) An election under subsection (5)(b), once made, is irrevocable.
(7) If subsection (1) does not apply to a corporation for a year of assessment (cessation year

### Inland Revenue Ordinance 《稅務條例》

14L. Commissioner’s determination—aircraft leasing
(Amended 10 of 2022 s. 2)(1) For the purposes of section 14J(2)(b)(iii), the Commissioner may, on application by a corporation, determine that the corporation is a qualifying aircraft leasing manager for a year of assessment.
(2) A corporation may apply for the Commissioner’s determination under subsection (1) only if—
(a) it is not an aircraft operator; and
(b) for the year of assessment, it satisfies neither of the following—
(i) the conditions specified in section 14J(3);
(ii) the safe harbour rule under section 14K.
(3) The Commissioner may make a determination under subsection (1) only if the Commissioner is of the opinion that the conditions specified in section 14J(3), or the safe harbour rule under section 14K, would, in the ordinary course of business of the corporation, have been satisfied for the year of assessment.
(Added 9 of 2017 s. 4)

14LA. Carrying out of activities in Hong Kong—supplementary provisions for section 14J(5)(a)(ii)
(1) For the purposes of section 14J(5)(a)(ii), an activity producing the assessable profits of a corporation that fall within section 14J(1) for a year of assessment is not considered to be carried out in Hong Kong by the corporation or arranged by the corporation to be carried out in Hong Kong in that year of assessment unless the requirements prescribed in section 6 of Schedule 17F (prescribed requirements