Q：
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What types of environmental protection machinery are eligible for the tax deduction?
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A：
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The eligible environmental protection machinery covers the following:
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Low noise construction machinery or plant registered under the Qualify Powered Mechanical Equipment system managed by the Environmental Protection Department;
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Air pollution control machinery or plant in compliance with the requirements under the Air Pollution Control Ordinance;
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Waste treatment machinery or plant in compliance with the requirements under the Waste Disposal Ordinance; or
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Wastewater treatment machinery or plant in compliance with the requirements under the Water Pollution Control Ordinance.
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Q：
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What is the timing of deduction?
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A：
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Full deduction is allowed in the year of purchase.
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Q：
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What is the tax treatment when environmental protection machinery has been sold?
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A：
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When the environmental protection machinery in respect of which a deduction has been allowed is sold, the sales proceeds should be chargeable to profits tax limited to amount of deductions previously allowed.
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Q：
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Does the tax deduction only apply to environmental protection machinery which is used for business?
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A：
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Yes, when the environmental protection machinery is partly not used in the production of chargeable profits, the tax deduction shall be adjusted proportionately.
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Q：
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Is there any restriction under deduction of expenditure on environmental protection machinery?
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A：
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It is restricted when expenditure incurred by a person on the provision of the environmental protection machinery include:
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Holds rights as a lessee under a lease; and
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Incurred under a hire-purchase agreement.
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FAQ
