Exemptions Relating to Feed-in Tariff Scheme
The Exemption from Profits Tax (Feed-in Tariff Scheme) Order (the Exemption Order) and the Business Registration (Amendment) Regulation 2019 came into operation on 1 March 2020. The Exemption Order applies in relation to profits tax chargeable for the year of assessment commencing on 1 April 2018 and for all subsequent years of assessment.
Individuals (not in the course of a business) who install small-scale renewable energy systems at their residential premises and participate in the Feed-in Tariff (FiT) Scheme are exempt from business registration in respect of the FiT business and the payment of profits tax in respect of the FiT payments. They are not required to apply for business registration or report FiT payments in their tax returns (year of assessment 2018/19 onwards) in respect of their participation in the FiT Scheme.
Individuals who are not covered by the exemptions should apply for business registration and report FiT payments in their tax returns in accordance with the Business Registration Ordinance and the Inland Revenue Ordinance respectively.