Cap. 112A 《稅務規則》Inland Revenue Rules

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)

Belting.

Crockery and cutlery.

Kitchen utensils.

Linen.

Loose tools.

Soft furnishings (including curtains and carpets).

Surgical and dental instruments.

Tubes for X-ray and infra-red machines.

No deduction shall be allowed for any outgoing or expense incurred in the production of profits not arising in or derived from Hong Kong, but where any outgoing or expense was incurred partly in the production of profits arising in or derived from within Hong Kong and partly in the production of profits arising or derived from outside Hong Kong, then, for the purpose of ascertaining the extent to which such outgoing or expense is deductible under section 16 of the Ordinance, an apportionment thereof shall be made on such basis as is most appropriate to the activities of the trade, profession or business concerned. (7 of 1986 s. 12)

Where, apart from or in addition to the circumstances referred to in paragraph (1) as giving rise to an apportionment, it is necessary to make an apportionment of any outgoing or expense by reason of it having been incurred not wholly and exclusively in the production of profits in respect of which a person is chargeable to tax under Part IV of the Ordinance, such apportionment or further apportionment, as the case may be, shall, subject to the provisions of rules 2B and 2C, be made on such basis as is most reasonable and appropriate in the circumstances of the case.

Where interest is paid or payable on any sum of money borrowed and used partly for the purpose of acquiring shares in a corporation which is chargeable to tax under Part IV of the Ordinance and partly for some other purpose or purposes, such interest as is attributable to the part used for the purpose of acquiring such shares shall, subject to paragraph (2), not be an allowable deduction, and where any apportionment is necessary to ascertain the amount of interest so attributable, it shall be made on such basis as is most reasonable and appropriate in the circumstances of the case.

Where a person is chargeable to tax under Part IV of the Ordinance in respect of profits from share dealing, no apportionment or disallowance of interest shall be made under paragraph (1) in respect of any money borrowed and used for the purpose of acquiring the shares constituting the subject-matter of such share dealing.

Where the investment portfolio of any person who is chargeable to tax under Part IV of the Ordinance is, in the opinion of the assessor, sufficiently substantial to warrant making an adjustment in respect of the expenses of supervision and management of the portfolio, a due proportion of the management, clerical and general expenses attributable to the supervision and management of the investment portfolio shall be disallowed, and, unless a more practical and suitable basis is available in the circumstances of the case, the estimation of such due proportion of the management, clerical and general expenses shall be made on the basis of such percentage of the total cost of the investments and securities which comprise the investment portfolio as is most reasonable and appropriate in the circumstances of the case, not exceeding—

Where the investment portfolio of any person who is chargeable to tax under Part IV of the Ordinance is not, in the opinion of the assessor, sufficiently substantial to warrant making an adjustment in respect of the supervision and management of the portfolio, no disallowance or apportionment shall be made under paragraph (1).

This rule has effect to the extent to which it is not inconsistent with sections 17B, 17C, 17D, 17E, 17F, 17G and 50AAK of the Ordinance. (12 of 2016 s. 20; 27 of 2018 s. 36)

In this rule—

Where any accounts prepared by a non-resident financial institution for its own purposes disclose, in the opinion of the Assessor, the true profits of the Hong Kong branch, the assessable profits shall be computed on the basis of such accounts. (12 of 2016 s. 20)

Where no accounts are prepared which in the opinion of the Assessor disclose the true profits of the Hong Kong branch, the following provisions shall apply in the determination of such profits—

Provided that any decision of an Assessor under this rule shall be subject to objection and appeal in accordance with the provisions of Part XI of the Ordinance. (L.N. 101 of 1965; 12 of 2016 s. 20)

(7 of 1986 s. 12)

This rule has effect to the extent to which it is not inconsistent with section 50AAK of the Ordinance. (27 of 2018 s. 37)

In this rule—

The Hong Kong profits of a person, other than a financial institution, having a permanent establishment in Hong Kong, but whose head office is situated outside Hong Kong, will be assessed as follows— (12 of 2016 s. 22)

Provided that the decision of an Assessor under this rule shall be subject to objection and appeal in accordance with the provisions of Part XI of the Ordinance. (L.N. 101 of 1965; 7 of 1986 s. 12)