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Guide to EV and EV Charging Incentives in Hong Kong

14 minutos

Sales of EV vehicles in Hong Kong are tipped to soar this year, particularly off the back of a 408% rise in sales in Q1 compared to last year.

What’s behind the resurgence? Major EV & charger initiatives that the Hong Kong Government has put into place. Here’s the full overview of all benefits available:

EV Incentives 

Exemption from First Registration Tax (FRT) for EVs

Eligible EV owners can receive an FRT concession cap of up to HK$97,500. This includes commercial and non-commercial EVs, as well as electric motorcycles and electric motor tricycles. This scheme is valid up to and including 31 March 2024.

First Registration Tax reduction for EVs
(“One-for-One Replacement” Scheme)

Car owners who arrange to scrap and de-register their eligible old vehicle and replace it with an eligible EV can receive an FRT concession cap of up to HK$250,000. This scheme is valid up to and including 31 March 2024.

Eligibility

  • The old vehicle must:
    • be in the vehicle class of private cars as defined under the Road Traffic Ordinance (Cap 374). This includes petrol driven, diesel driven, plug-in or non-plug in hybrid electric or pure electric cars.
    • have been first registered in Hong Kong for at least 6 years at the point of de-registration.
    • have been continuously registered by the applicant/owner for 18 months before its de-registration.
    • must have been licensed for at least 10 months within the 12 months before its de-registration.
  • The new vehicle must:
    • be in the vehicle class of private car as defined under the Road Traffic Ordinance (Cap 374) and must be solely powered by electricity.
    • be registered under the name of the registered owner of the old vehicle when the latter is scrapped and de-registered. 
    • have a submission date after the de-registration date of the old vehicle. The period between the two dates should not be longer than 3 months.

How to apply & get more information

  • Download the application form here.
  • For more information on eligibility and the application process, download this guide.
  • You can also call the Hong Kong Licensing Office on +852 2804 2270 or email tdenq@td.gov.hk for more information.

Profits Tax Deduction for Capital Expenditure on Environment-friendly Vehicles

Businesses that purchase eligible EVs are entitled to 100% profits tax deduction for the capital expenditure on EVs in the first year of purchase.

  • Click here for a list of eligible light goods vehicles
  • Click here for a list of eligible PHEVs
  • Click here for a list of eligible BEVs

The Hong Kong Environmental Protection Department will issue environment-friendly vehicle certificates to eligible vehicles under the “Tax Incentives Scheme for Environment-friendly Commercial Vehicles”. Businesses that purchase eligible EVs should obtain a copy of the environment-friendly vehicle certificates from vehicle dealers for tax filing purposes.

For more information, contact the Hong Kong Inland Revenue Department on +852 2594 6392  

New Energy Transport Fund

In 2020, the Hong Kong Government revised its ‘Pilot Green Transport Fund’, renaming it the New Energy Transport Fund and injecting HK$800 million to subsidize the transport trade to make the switch to greener technologies.

Eligibility 

Applicants must be an existing transport operator based in Hong Kong (including cross-boundary transport) who:

  • operates commercial transport vehicles such as taxis, light buses, buses, vessels, and motorcycles.
  • has been in the transport service for more than a year and can provide supporting documents as proof.
  • has the potential to put the new technology under test into wider use upon a successful trial.
  • has already installed or will apply to install their charging station.
  • is willing to share with other operators the results of the test of the subsidized product.
  • is not receiving or has not received funding from other Government sources, public bodies, or charitable organizations for the same purpose of the application, except the tax incentive schemes mentioned above.
  • is not a supplier or manufacturer of the green innovative technology product used in the trial

Subsidy amount

  • 100% of the difference between the new energy transport product and its conventional counterpart or 50% of the cost of the new energy transport product, whichever is higher, up to HK$3 million per vehicle, HK$10 million per vessel, and HK$10 million per application.
  • 75% of the total cost of setup for related support systems.
  • 75% of the cost of conversion of an in-use conventional vehicle to a new energy vehicle, up to HK$3 million per vehicle or vessel and HK$10 million per application.

Application limitations 

  • No more than 15 applications per applicant.
  • No more than 6 products tested per application.
  • No more than 7 applications approved for an applicant and its related companies.

Click here for notes on completing the application.

Click here for application requirements.

Click here to download the application form.

EV Charging Incentives

EHSS

The Hong Kong Government has rolled out a HK$2 billion “EV-charging at Home Subsidy Scheme” (“EHSS”) to subsidize the installation of EV charging-enabling infrastructure (EVCEI) in car parks of existing private residential buildings. The scheme aims to create an extra 60,000 private car parking spaces.

It covers the costs of employing a consultant and a contractor for the installation of infrastructure that enables EV charging, as well as the associated building work required. The scheme does not cover the purchase costs of an EV charger and charging facilities installed before the application, will not be covered. The processing of applications is on a first-come-first-served basis until the funding is used up.

Eligibility

The car park must fulfill the following criteria:

  • Must be part of a residential building.
  • Must not be under development at the time of the application.
  • Must be a permanent car park that is not granted by or leased by the government under short term tenancies.
  • Must not be subject to any contract or agreement with any other parties that provide EV charging services in the car park.
  • It must contain 10 or more parking spaces that are used solely for parking purposes.
  • Must be in multiple ownership, with no owner owning more than 40% of the total parking spaces.

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