Information about debt instruments eligible for tax concessions and exemptions, both before and after April 2018.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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### Qualifying Debt Instruments: Taxation Benefits
As of April 2018, certain debt instruments issued before this date qualify for specific tax concessions under the Inland Revenue Ordinance. These instruments are categorized based on their term into short-term, medium-term, and long-term debt instruments.
#### Short Term/ Medium Term Debt Instruments
Short-term and medium-term debt instruments issued before April 2018 are eligible for a Profits Tax concession. Under section 14A(1) of the Inland Revenue Ordinance, these instruments are taxed at 50% of the normal Profits Tax rate.
#### Long Term Debt Instruments
Long-term debt instruments issued before April 2018 are exempt from Profits Tax as of the year of assessment 2003/04, in accordance with section 26A(1) of the Inland Revenue Ordinance.
### Qualifying Debt Instruments Issued on or After April 2018
Debt instruments issued on or after April 2018 are eligible for a different tax treatment. According to section 14A("1B") of the Inland Revenue Ordinance, all such instruments are exempt from Profits Tax as of the year of assessment 2018/19.
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