||Title:||Inland Revenue Ordinance||Gazette Number:||E.R. 1 of 2012|
|Section:||16I||Heading:||Deductions for specified capital expenditure incurred in relation to environmental protection facilities||Version Date:||09/02/2012|
(1) Notwithstanding section 17, this section applies in ascertaining the profits from any trade, profession or business in respect of which a person is chargeable to tax under this Part for any year of assessment (referred to in this section as that year of assessment).
(2) Any specified capital expenditure incurred by the person during the basis period for that year of assessment in relation to any environmental protection machinery or environment-friendly vehicle shall be deducted. (Amended 10 of 2010 s. 4)
(3) Any specified capital expenditure incurred by the person during the basis period for that year of assessment in relation to any environmental protection installation shall be deducted as follows°X
(a) 20% shall be deducted for that year of assessment; and
(4) If an environmental protection facility is used partly in the production of profits chargeable to tax under this Part and partly for any other purposes, the amount that shall be deducted under subsection (2) or (3) is the amount of specified capital expenditure that is proportionate to the extent of the use of the facility in the production of those profits.
(b) the remaining part shall be deducted by 4 equal amounts, one for each of the next succeeding 4 years of assessment, so long as the installation has not been sold at the end of the basis period for the year of assessment concerned.
(5) A person is not entitled to the allowances under Part 6 in respect of any specified capital expenditure if a deduction for any part of the expenditure is allowed under this section.
(6) For the purposes of this section, any specified capital expenditure incurred for the purposes of a trade, profession or business by a person about to carry on the trade, profession or business shall be treated as if it had been incurred by that person on the first day on which he carries on the trade, profession or business.
(Added 21 of 2008 s. 4. Amended E.R. 1 of 2012)