### Inland Revenue Ordinance 《稅務條例》

25. Deduction of property tax from profits tax
Where property tax is payable for any year of assessment under Part 2 in respect of any land or buildings owned by a person carrying on a trade, profession or business, any profits tax payable by such person in respect of that year of assessment shall be reduced by a sum not exceeding the amount of such property tax paid by him:
Provided that—
(a) no reduction shall be allowed unless either the profits derived from such property are part of the profits of the trade, profession or business carried on by such person or the property is occupied or used by him for the purposes of producing profits in respect of which he is chargeable to tax under this Part; (Replaced 11 of 1961 s. 5. Amended 35 of 1965 s. 14)
(b) if the amount of property tax paid for a year of assessment exceeds the profits tax payable, the amount so paid in excess shall be refunded in accordance with the provisions of section 79; (Replaced 11 of 1961 s. 5)
(c) (Repealed 19 of 1996 s. 8)(Replaced 3 of 1949 s. 9. Amended E.R. 1 of 2012)

26. Exclusion of certain dividends and profits from the assessable profits of other persons
For the purposes of this Part—
(a) a dividend from a corporation which is chargeable to tax under this Part shall not be included in the profits in respect of which any other person is chargeable to tax under this Part; and
(b) save as otherwise provided no part of the profits or losses of a trade, profession or business carried on by a person who is chargeable to tax under this Part shall be included in ascertaining the profits in respect of which any other person is chargeable to tax under this Part. (Added 2 of 1971 s. 18)
(Replaced 16 of 1951 s. 5. Amended 28 of 1964 s. 10; 2 of 1971 s. 18; 7 of 1975 s. 25; 62 of 1975 s. 2)

### Inland Revenue Ordinance 《稅務條例》

26AB. Threshold requirements relating to concession condition provisions
(1) The Commissioner may, by notice published in the Gazette, prescribe a threshold requirement for determining whether, for the purposes of a concession condition provision, an activity producing—
(a) the assessable profits of a corporation that fall within section 14B(1)(a), (b), (c) or (d) or 14D(1)(a), (b) or (c); or (Amended 15 of 2020 s. 13; 5 of 2024 s. 13)
(b) the exempt sums mentioned in section 23B(4AA),
is carried out in Hong Kong by the corporation or the person concerned (taxpayer) or is arranged by the taxpayer to be carried out in Hong Kong for a year of assessment or a basis period.
(2) If a threshold requirement is prescribed for an activity, the activity is not, for the purposes of a concession condition provision, considered to be carried out in Hong Kong by the taxpayer or arranged by the taxpayer to be carried out in Hong Kong for the year of assessment or the basis period unless the threshold requirement is met.
(3) To avoid doubt, the fact that the threshold requirement is not met for the purposes of subsection (2) does not imply that the assessable profits or the exempt sums under subsection (1)(a) or (b) do not arise in or are not derived from Hong Kong.
(4) In this section—
concession condition provision (寬減條件條文) means section 14B(2)(a), 14D(5)(a)(ii) or 23B(4AA); (Amended 5 of 2024 s. 13) Note (with no legislative effect)—
Section 14B(2)(a), 14D(5)(a)(ii) or 23B(4AA) imposes a condition for activities producing the assessable profits or the exempt sums concerned to be carried out in Hong Kong or arranged to be carried out in Hong Kong. The condition must be met in order for the tax concession under section 14B(1), 14D(1) or 23B(4AA) to apply. (Amended 5 of 2024 s. 13)

threshold requirement (門檻要求), in relation to an activity, means the level of the activity in Hong Kong as measured by various indicators, such as—
(a) the number of full time employees in Hong Kong who carry out the activity and have the qualifications necessary for doing so; and
(b) the amount of operating expenditure incurred in Hong Kong for the activity.

(Added 27 of 2018 s. 33)

### Inland Revenue Ordinance 《稅務條例》

26AC. Part 8AA applies
Part 8AA applies for the purposes of calculation of profits tax.
(Added 27 of 2018 s. 16)

26B. Concessionary deductions, general provisions
(1) This Part prescribes the deductions which shall be allowable to persons chargeable to tax under Part 3 or 7 and the circumstances in which such deductions shall be so allowable.
(2) Every person who claims a deduction under this Part shall make his claim in the specified form and the person shall be allowed a deduction only if the claim contains such particulars and is supported by such proof as the Commissioner may require.
(3) In this Part—
deduction (扣除) means a deduction allowable under this Part;
person (人) means a person chargeable to tax under Part 3 or 7, as the case may be.
(Amended E.R. 1 of 2012)

### Inland Revenue Ordinance 《稅務條例》

26H. Application
This Division applies in relation to the year of assessment commencing on 1 April 2019 and to all subsequent years of assessment.

26I. Interpretation
(1) In this Division—
adopted (領養) means adopted in any manner recognized by the laws of Hong Kong;
insured person (受保人), in relation to a VHIS policy, means an individual whose risks are covered by the policy;
policy holder (保單持有人), in relation to a VHIS policy, means a legal holder of the policy;
qualifying premiums (合資格保費), in relation to a VHIS policy, means the net sum of moneys that is payable under the policy to the insurer for writing or renewing the policy in so far as it relates to the insurance plan certified by the Secretary for Health to be in compliance with the Government’s Voluntary Health Insurance Scheme (VHIS