### Inland Revenue Ordinance 《稅務條例》

20AT. Sub-funds of open-ended fund companies
(1) This section applies in relation to an open-ended fund company.
(2) If the instrument of incorporation of the company (main company

20AU. Losses sustained by funds (other than open-ended fund companies) and special purpose entities
(1) This section applies in relation to a fund (other than an open-ended fund company) and a special purpose entity.
(2) If a fund is exempt from the payment of tax under section 20AN in respect of its assessable profits for a year of assessment, any loss sustained by the fund from a transaction referred to in section 20AN(2)(a) or (b) in the year of assessment is not available for set off against any of its assessable profits for the year of assessment or any subsequent year of assessment.
(3) If a special purpose entity is exempt from the payment of tax under section 20AO in respect of its assessable profits for a year of assessment, any loss sustained by the entity from a transaction referred to in section 20AO(2) in the year of assessment is not available for set off against any of its assessable profits for the year of assessment or any subsequent year of assessment.
(4) In this section—
special purpose entity (特定目的實體) has the meaning given by section 20AO(4).
(Added 5 of 2019 s. 6)

20AV. Losses sustained by open-ended fund companies
(1) This section applies in relation to an open-ended fund company.
(2) If the company is exempt from the payment of tax under section 20AN in respect of its assessable profits for a year of assessment, any loss sustained by the company from a transaction referred to in section 20AN(2)(a), (b) or (c) in the year of assessment is not available for set off against any of its assessable profits for the year of assessment or any subsequent year of assessment.
(3) Any loss sustained by the company from a specified activity in respect of which there is not an exemption from the payment of tax for assessable profits under section 20AN or 20AS for a year of assessment is only available for set off against any assessable profits of the company earned from the specified activity for the year of assessment or any subsequent year of assessment.
(4) In this section—
specified activity (指明活動) means a transaction, a direct trading, a direct business undertaking or utilization of assets.
(Added 5 of 2019 s. 6)

### Inland Revenue Ordinance 《稅務條例》

20AW. Interpretation of sections 20AX and 20AY and Schedules 15C and 15D
(1) This section applies to the interpretation of sections 20AX and 20AY and Schedules 15C and 15D.
(2) In relation to any year of assessment, a person is to be regarded as a resident person if—
(a) where the person is a natural person who is not a trustee of a trust estate, the person—
(i) ordinarily resides in Hong Kong in the year of assessment; or
(ii) stays in Hong Kong for a period or a number of periods amounting to—
(A) more than 180 days during the year of assessment; or
(B) more than 300 days in 2 consecutive years of assessment one of which is the year of assessment;
(b) where the person is a corporation that is not a trustee of a trust estate—the central management and control of the corporation is exercised in Hong Kong in the year of assessment;
(c) where the person is a partnership that is not a trustee of a trust estate—the central management and control of the partnership is exercised in Hong Kong in the year of assessment; or
(d) where the person is a trustee of a trust estate—the central management and control of the trust estate is exercised in Hong Kong in the year of assessment.
(3) In relation to any year of assessment, a person is a non-resident person if the person is not a resident person in relation to the year of assessment.
(4) A person (the person

### Inland Revenue Ordinance 《稅務條例》

23AAAE. Adjustment to assessable profits due to change in insurance capital requirements: non-life long term insurance business
(1) The assessable profits of a corporation from its non-life long term insurance business for its material year of assessment are ascertained by deducting four-fifths of the specified amount from the assessable profits as ascertained in accordance with section 23AAA for that year of assessment.
(2) Subject to subsection (3), the assessable profits of the corporation from its non-life long term insurance business for each of the 4 consecutive years of assessment next following its material year of assessment are ascertained by adding one-fifth of the specified amount to the assessable profits as ascertained in accordance with section 23AAA for the year of assessment concerned.
(3) If the corporation ceases to carry on non-life long term insurance business in Hong Kong at any time in the basis period for any year of assessment (cessation year

### Inland Revenue Ordinance 《稅務條例》

23AA. Mutual insurance corporations
(1) For the purposes of this Part, a mutual insurance corporation is taken to carry on an insurance business.
(2) The assessable profits from the insurance business is— (Amended 20 of 2023 s. 106)
(a) to be ascertained in the way provided in sections 23, 23AAA, 23AAAB, 23AAAC, 23AAAD, 23AAAE, 23A, 23AB, 23AC, 23AD and 23AE for ascertaining assessable profits; and (Amended 20 of 2023 s. 106)
(b) taken to be assessable profits chargeable to tax under section 14.
(Replaced 15 of 2020 s. 11)

### Inland Revenue Ordinance 《稅務條例》

23AC. Ascertainment of assessable profits under section 23AB: Commissioner’s powers to exclude or apportion certain sums
(1) For the purposes of section 23AB, if the Commissioner is of the opinion that any part of the investment fund or shareholders’ fund of a specified insurer is not required to support a qualifying insurance business of the specified insurer, the Commissioner may exercise the power under subsection (3)(a).
(2) For the purposes of this section or section 23AB, if the Commissioner is of the opinion that an item of allowance, balancing charge, expenditure, gain, income or profit falls to be apportioned between the qualifying insurance business and other businesses of the specified insurer, the Commissioner may exercise the power under subsection (3)(b).
(3) The Commissioner may—
(a) for the purposes of subsection (1)—exclude from the total interest, profits or other income of the qualifying insurance business, a portion of the income, gains or profits derived from the funds referred to in that subsection, as the Commissioner considers reasonable in the circumstances; and
(b) for the purposes of subsection (2)—apportion an item referred to in that subsection as the Commissioner considers reasonable in the circumstances.
(4) In this section—
qualifying insurance business (合資格保險業務) has the meaning given by section 23AB(4);
specified insurer (指明保險人) has the meaning given by section 14AB(1).
(Added 15 of 2020 s. 12)