Hong Kong Regulations

INLAND REVENUE RULES - RULE 2

Rates of depreciation

(1) For the purpose of the Ordinance, the expression "machinery or plant"
(機械或工業裝置) shall include or be deemed to include the items
specified in the second column of the First Part of the Table annexed to this
rule but not the items specified in the second column of the Second Part of
that Table which shall be deemed to be included in the expression "any
implement, utensil and article" (任何工具、器具及物品) for the
purposes of the Ordinance.

(2) The rates of depreciation specified in the third column of the First Part
of the Table annexed to this rule are hereby prescribed for the purpose of
ascertaining the annual allowance to be made under sections 37(2), 37A(2) and
39B(3) of the Ordinance. (L.N. 365 of 1980)

(3) Wharves shall not be or be deemed to be included in the
expression "plant or machinery" (工業裝置或機械) but where a balancing
allowance or a balancing charge falls to be made to or on any person under
section 35 of the Ordinance in respect of any wharf, the allowances, if any,
granted in respect of such wharf under section 37 or 37A of the Ordinance for
any year of assessment prior to the year of assessment commencing on 1 April
1965, shall be taken into account in calculating such balancing allowance or
charge. (L.N. 101 of 1965)

TABLE

FIRST PART

Item Rate of Depreciation 1. Air-conditioning plant excluding room
air-conditioning units ................... 10% 2. Bank safe deposit boxes,
doors and grills ............................................. 10% 3.
Broadcasting transmitters
................................................................... 10% 4.
Cables (electric)
...........................................................................
...... 10% 5. Lamp standards (street)-gas or electric
................................................ 10% 6. Lifts and escalators
(electric) .............................................................. 10%
7. Mains (gas or water)
.......................................................................... 10%
8. Oil tanks
...........................................................................
................. 10% 9. Shipping- Ships, junks and sampans
.............................................................. Lighters
...........................................................................
............ Tugs
...........................................................................
.................
10%
10%
10% 10. Sprinklers
...........................................................................
................ 10% 11. Domestic appliances
...........................................................................
20% 12. Furniture (excluding soft furnishings)
................................................... 20% 13. Room
air-conditioning units
................................................................. 20% 14.
Shipping- Launches and ferry vessels
........................................................... Hydrofoils
...........................................................................
.........
20%
20% 15. Taxi meters
...........................................................................
............. 20% 16. Type and blocks (if not dealt with on renewals basis)
............................ 20% 17. Aircraft (including engines)
................................................................. 30% 18. Bar
syphon apparatus
......................................................................... 30%
19. Bicycles
...........................................................................
................. 30% 20. Bleaching and finishing machinery and plant
......................................... 30% 21. Concrete pipe moulds
......................................................................... 30%
22. Electric cookers and kettles
................................................................ 30% 23.
Electronic data processing equipment
.................................................. 30% 24. Electronics
manufacturing machinery and plant .................................... 30% 25.
Motor vehicles
...........................................................................
........ 30% 26. Plastic manufacturing machinery and plant including moulds
.................. 30% 27. Shipping- Outboard motors
..........................................................................
30% 28. Silk manufacturing machinery and plant
............................................... 30% 29. Sulphuric and nitric
acid plant .............................................................. 30%
30. Tank lorries
...........................................................................
............ 30% 31. Textile and clothing manufacturing machinery and plant
........................ 30% 32. Tractors-bull dozers and graders
......................................................... 30% 33. Weaving,
spinning, knitting and sewing machinery ................................ 30%
34. Machinery or plant, not specified in items 1 to 33, and used for the
purposes of a transport, tunnel, dock, water, gas or electricity undertaking
or a public telephone or public telegraphic service
.................................

10% 35. Any other machinery or plant, not specified in items 1 to 34
.................. 20% (L.N. 149 of 1981)

SECOND PART

Item

1. Belting. 2. Crockery and cutlery. 3. Kitchen utensils. 4. Linen. 5. Loose
tools. 6. Soft furnishings (including curtains and carpets). 7. Surgical and
dental instruments. 8. Tubes for X-ray and infra-red machines. (L.N. 81 of
1974)

"machinery or plant" (機械或工業裝置) "any implement, utensil and
article" (任何工具、器具及物品)

"plant or machinery" (工業裝置或機械)