Hong Kong Customs presents Elite Enterprise Partnership Award 2024
Hong Kong Customs today (October 16) held an award presentation ceremony of the Elite Enterprise Partnership Award 2024 at the Customs Headquarters Building to commend 18 stakeholders of logistics and intellectual property industries for their proactive co-operation and contribution to Customs. Established in 2022, this year marks the third round of the Award. In the past two presentation ceremonies, eight and 13 enterprises were awarded. Among the awardees this year, four have been presented with the award for three consecutive years. Hong Kong Customs expresses sincere gratitude for their unfailing support to the work of the department.
At the ceremony, the Commissioner of Customs and Excise, Ms Louise Ho, said that the prevalence of e-commerce and online shopping has provided business opportunities for the industry, and brought new challenges to customs work at the same time. Hong Kong Customs attaches great importance to the participation of the private sector to strengthen its enforcement capabilities and recognises the instrumental role played by the industry for the department in striking a balance between clearance efficiency and enforcement effectiveness. Customs will maintain close co-operation with various industries to consolidate the role of Hong Kong as an international transport and logistics hub.
The awardees this year came from various sectors, including those of express couriers, logistics companies, container and terminal companies, logistics associations, and trademark representatives. The diversity of stakeholders showcases the close co-operation and connections between Customs and different enterprises.
The World Customs Organization (WCO) has long been encouraging customs administrations to actively strengthen ties with partners. As the Vice-Chairperson for the Asia/Pacific Region of the WCO, Hong Kong Customs will spare no effort to reinforce the collaborative relationship between customs administrations in the region and the industry. In addition, Hong Kong Customs will promote new collaborative partnerships between regional customs authorities and other stakeholders to tackle the new challenges under the ever-changing enforcement environment.
Hong Kong Customs presents Elite Enterprise Partnership Award 2024 Source: HKSAR Government Press Releases
Hong Kong Customs presents Elite Enterprise Partnership Award 2024 Source: HKSAR Government Press Releases
Inland Revenue (Amendment) (Tax Deductions for Leased Premises Reinstatement and Allowances for Buildings and Structures) Bill 2024 to be gazetted
The Inland Revenue (Amendment) (Tax Deductions for Leased Premises Reinstatement and Allowances for Buildings and Structures) Bill 2024 will be gazetted on October 18. The Bill seeks to implement two profits tax enhancement measures in the 2024-25 Budget, which include introducing a tax deduction for expenses incurred for reinstating the condition of premises under a lease to their original condition, and removing the time limit for claiming annual allowances in respect of industrial/commercial buildings or structures.
Under the Bill, if a lessee is obligated to reinstate or pay for the reinstatement of his/her premises to their original condition at the end of the lease term or on early termination of the lease, and the relevant costs have been incurred and are reasonable, the lessee can claim tax deduction for the relevant costs.
Furthermore, currently a qualifying taxpayer may claim an annual allowance in respect of the expenditure incurred on the construction of an industrial/commercial building or structure during a specified period (usage period). If the building or structure is sold before the expiry of the usage period, the buyer may claim annual allowances over the remaining years of assessment within the usage period. However, if the building or structure is sold after the expiry of the usage period, the buyer will not be entitled to claim any annual allowance even if there is residue of expenditure. The Bill proposes removing the time limit for the relevant claims in order not to discourage the purchase of old or second-hand buildings or structures. If a building or structure is sold in the basis period for a year of assessment beginning on or after April 1 this year, the buyer will be entitled to claim annual allowances until the residue of expenditure has been fully claimed, regardless of whether the usage period of the building or structure concerned has expired.
A Government spokesman said, "The two enhancement measures will alleviate the tax burden of taxpayers and promote the business environment. As reinstatement costs generally represent a small part of a taxpayer's turnover, it is envisaged that the proposed tax deduction would not impact on government revenue. Regarding the removal of the time limit for claiming annual allowances for buildings or structures, based on the statistics for the year of assessment 2022/23, it is expected that it will reduce the annual government revenue by about $164 million."
The Bill will be introduced into the Legislative Council for first reading on October 30 with a view to implementing the above measures in the year of assessment 2024/25.
