On 6 February 2024, the Hong Kong Inland Revenue Department (IRD) released the updated lists of Qualifying Debt Instruments (QDIs) at the end of 31 December 2023.

The lists include:

Qualifying Debt Instruments issued before 1 April 2018

  • Short Term/ Medium Term Debt Instruments Eligible for Profits Tax Concession –  The short term/ medium term debt instruments are intended to be eligible for Profits Tax concession (i.e. chargeable at 50% of the normal profits tax rate) in accordance with section 14A(1) of the Inland Revenue Ordinance.
  • Long Term Debt Instruments Eligible for Profits Tax Exemption – The long term debt instruments are intended to be eligible for Profits Tax exemption in accordance with section 26A(1) of the Inland Revenue Ordinance as from the year of assessment 2003/04.

Qualifying Debt Instruments issued on or after 1 April 2018 

  • The debt instruments are intended to be eligible for Profits Tax exemption in accordance with section 14A(1B) of the Inland Revenue Ordinance as from the year of assessment 2018/19.

The QDIs listed generally include debt instruments issued by governments and financial institutions in the Asia-Pacific region.