Aircraft leasing in Hong Kong
The new tax regime for the industry implemented in 2017 reduced the taxable base to 20% of the adjusted profits and the tax rate was lowered to 8.25%, resulting in a final effective tax rate of just 3.37%. This new fiscal framework is giving strong incentives for aircraft lessors to establish their regional APAC headquarters in Hong Kong.
Additionally, the airline industry remains robust. The total forecast delivery of new aircraft from 2016 to 2035 is approximately 39,720. Of that total, 6,810 will be bought by Chinese airlines for $ 1 trillion. Out of the top 20 lessors, 7 are from Asia-Pacific. In order to seize this demand, the main players in Europe are considering to set up a branch in Hong Kong to be closer to their Asian customers.