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Interim Arrangement for Individuals Participating in Feed-in Tariff Scheme

The Environment Bureau will submit legislative amendment proposals to the Legislative Council to exempt individuals (not in the course of a business) who install small-scale renewable energy (RE) systems at their residential premises and participate in the Feed-in Tariff (FiT) Scheme from applying for business registration and the payment of profits tax in respect of the FiT payments. Before the passage of the amendment legislations, such individuals are not required to apply for business registration or report FiT payments in their tax returns in respect of their participation in the FiT Scheme.
 

Feed-in Tariff (FiT) Scheme

Under the post-2018 Scheme of Control Agreements, FiT Scheme is an important new initiative to promote the development of renewable energy (RE). FiT Scheme will help encourage investment in RE as the power generated can be sold to the power companies at a rate higher than the normal electricity tariff rate to help recover the costs of investment in the RE systems and generation. Individuals who are successful applicants of the FiT Scheme may receive FiT payments from CLP Power Hong Kong Limited and The Hongkong Electric Company, Limited from 1 October 2018 and 1 January 2019 respectively.
 
For further details relating to the FiT Scheme, please visit http://re.emsd.gov.hk/english/fit/int/fit_int.html.
 

Interim Arrangement relating to Business Registration and Tax Return

As announced in the Policy Agenda under the 2018 Policy Address, it is proposed to support and facilitate participation of individuals in the development of RE. In this connection, the Environment Bureau proposes that individuals (not in the course of business) who install small-scale RE systems at their residential premises would be exempted from the requirement of applying for business registration and the payment of profits tax in respect of the FiT payments received through participation in the FiT Scheme. The Environment Bureau will submit legislative amendment proposals to the Legislative Council in this regard.
 
Before the passage of the amendment legislation, the aforementioned individuals are not required to apply for business registration from the Inland Revenue Department or report FiT payments in their tax returns in respect of their participation in the FiT Scheme.
 
Individuals who are not covered by the proposed exemption 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.