### Inland Revenue Ordinance 《稅務條例》

23AD. Adjustment to assessable profits due to change in insurance capital requirements: general insurance business
(1) Subject to subsections (3) and (4) and despite sections 23A and 23AB—
(a) subject to paragraph (b), if a corporation carries on general insurance business in Hong Kong in the basis period for its material year of assessment—the corporation may elect in writing that subsections (5), (6) and (7) apply to the corporation; or
(b) if a corporation has made an election under section 14B(2)(b) such that section 14B(1) applies to the corporation for its material year of assessment—the corporation may elect in writing that subsections (5), (6), (7), (8), (9) and (10) apply to the corporation.
(2) An election made under subsection (1)(a) or (b) is irrevocable.
(3) An election made under subsection (1)(a) or (b) has no effect if the corporation that makes the election no longer carries on general insurance business in Hong Kong as at the end of the basis period for its material year of assessment.
(4) An election made under subsection (1)(b) has no effect to the extent that it relates to the application of subsections (8), (9) and (10) if the corporation that makes the election no longer carries on qualifying insurance business in Hong Kong as at the end of the basis period for its material year of assessment.
(5) The assessable profits of the corporation from its general 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 23A for that year of assessment.
(6) Subject to subsection (7), the assessable profits of the corporation from its general 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 23A for the year of assessment concerned.
(7) If the corporation ceases to carry on general 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》

23AE. Transitional provisions for ascertainment of assessable profits from life insurance business, non-life long term insurance business and general insurance business
(1) In relation to a corporation in any year of assessment before the corporation’s material year of assessment (within the meaning of section 23AAAB(2)), the pre-amended Subdivision, to the extent that it relates to the ascertainment of assessable profits from life insurance business or non-life long term insurance business, continues to apply as if the Insurance (Amendment) Ordinance 2023 (20 of 2023) had not been enacted.
(2) In relation to a corporation in any year of assessment before the corporation’s material year of assessment (within the meaning of section 23AD(11)), the pre-amended Subdivision, to the extent that it relates to the ascertainment of assessable profits from general insurance business, continues to apply as if the Insurance (Amendment) Ordinance 2023 (20 of 2023) had not been enacted.
(3) In this section—
pre-amended Subdivision (原有次分部) means this Subdivision as in force immediately before the commencement date* of Part 3 of the Insurance (Amendment) Ordinance 2023 (20 of 2023).
(Added 20 of 2023 s. 108) Editorial Note:
* Commencement date: 14 July 2023.

### Inland Revenue Ordinance 《稅務條例》

23C. Ascertainment of the assessable profits of a resident aircraft-owner
(1) Where a person carries on a business as an owner of aircraft and—
(a) the business is normally controlled or managed in Hong Kong; or 
(b) the person is a company incorporated in Hong Kong, 
that person shall be deemed to be carrying on that business in Hong Kong. 
(2) Where a person is deemed to be carrying on a business as an owner of aircraft in Hong Kong under this section the assessable profits from that business for any year of assessment shall be the sum bearing the same ratio to the aggregate of the relevant sums earned by or accrued to that person during the basis period for that year of assessment as that person’s total aircraft profits for the basis period bear to the aggregate of the total aircraft income earned by or accrued to that person during that basis period for that year of assessment. 
(2A) For the purposes of subsection (2) and the expression “relevant sums” in that subsection and in subsection (5), where any arrangement for relief from double taxation has effect by virtue of section 49 in respect of any person of the description mentioned in subsection (1), the relevant sums earned by or accrued to that person shall include any sums derived from, attributable to, or in respect of any relevant carriage shipped in an arrangement territory, any relevant charter hire attributable to an arrangement territory and charter hire in respect of the operation of an aircraft flying between aerodromes or airports within an arrangement territory. (Added 19 of 1996 s. 7) 
(2B) Where any arrangement for relief from double taxation has effect in the circumstances mentioned in subsection (2A), then in determining the relevant sums earned by or accrued to a person for the purposes of that subsection—
(a) subsections (3) and (4), the definitions air waybill

### Inland Revenue Ordinance 《稅務條例》

23E. Alternative computation of “total shipping profits” and “total aircraft profits”
Where total shipping profits within the meaning of section 23B(12) or total aircraft profits within the meaning of section 23C(5) or 23D(8), as the case may be, have been computed on a basis which differs materially from that provided for in this Part for the ascertainment of assessable profits in respect of which a person is chargeable to tax, those profits may be adjusted so as to correspond as nearly as may be to the sum that would have been arrived at had they been computed in accordance with the provisions of this Part relating to the ascertainment of assessable profits in respect of which a person is chargeable to tax.
(Added 47 of 1992 s. 3)

24. Clubs, trade associations, etc.
(1) Where a person carries on a club or similar institution which receives from its members not less than half of its gross receipts on revenue account (including entrance fees and subscriptions), such person shall be deemed not to carry on a business; but where less than half of its gross receipts are received from members, the whole of the income from transactions both with members and others (including entrance fees and subscriptions) shall be deemed to be receipts from a business, and such person shall be chargeable in respect of the profits therefrom. (Amended 36 of 1955 s. 23; 49 of 1956 s. 22)
(2) Where a person carries on a trade, professional or business association in such circumstances that more than half its receipts by way of subscriptions are from persons who claim or would be entitled to claim that such sums were allowable deductions for the purposes of section 16, such person shall be deemed to carry on a business, and the whole of the income of such association from transactions both with members and others (including entrance fees and subscriptions) shall be deemed to be receipts from business, and such person shall be chargeable in respect of the profits therefrom. (Amended 36 of 1955 s. 34; 2 of 1971 s. 17; 40 of 1972 s. 3)
(3) In this section, members (會員) means those persons entitled to vote at a general meeting of the club, or similar institution, or trade, professional or business association. (Replaced 36 of 1955 s. 34. Amended 40 of 1972 s. 3)