HK Cap. 112 — Inland Revenue Ordinance

To impose a tax on property, earnings and profits. (Amended 26 of 1969 s. 2 ; 17 of 1989 s. 2 ) [3 May 1947] (Format changes— E.R. 1 of 2012 ) Part 1 Introductory 1. Short title This Ordinance may be cited as the Inland Revenue Ordinance . 2. Interpretation (1) In this Ordinance, unless the context otherwise requires— active partner ( 積極參與的合夥人 ), in relation to a partnership, means a partner who takes an active part in the control, management, or conduct of the trade or business of such partnership; agent ( 代理人 ), in relation to a non-resident person or to a partnership in which any partner is a non-resident person, includes— (a) the agent, attorney, factor, receiver, or manager in Hong Kong of such person or partnership, and (b) any person in Hong Kong through whom such person or partnership is in receipt of any profits or income arising in or derived from Hong Kong; approved association of underwriters ( 獲認可的承保人組織 ) means an association of underwriters approved by the Insurance Authority as mentioned in section 6(1)(c) of the Insurance Ordinance ( Cap. 41 ); (Added 15 of 2020 s. 3 ) approved charitable donation ( 認可慈善捐款 ) means a donation of money to any charitable institution or trust of a public character which is exempt from tax under section 88 or to the Government, for charitable purposes; (Replaced 13 of 1971 s. 2 . Amended 76 of 1975 s. 2 ; 74 of 1981 s. 4 ; 30 of 1990 s. 2 ; 78 of 1999 s. 7 ) arrangement ( 安排 ) includes— (a) any agreement, arrangement, understanding, promise or undertaking, whether express or implied, and whether or not enforceable or intended to be enforceable, by legal proceedings; and (b) any scheme, plan, proposal, action or course of action or course of conduct; (Added 32 of 1998 s. 3 ) assessable income ( 應評稅入息 ) means the assessable income of a person in any year of assessment as ascertained in accordance with sections 11B , 11C and 11D ; and net assessable income ( 應評稅入息實額 ) means assessable income as adjusted in accordance with section 12 ; (Replaced 71 of 1983 s. 2 ) assessable profits ( 應評稅利潤 ) means the profits in respect of which a person is chargeable to tax for the basis period for any year of assessment, calculated in accordance with the provisions of Part 4 ; (Replaced 28 of 1964 s. 2 ) assessor ( 評稅主任 ) means an assessor appointed under this Ordinance; assistant commissioner ( 助理局長 ) means an assistant commissioner of Inland Revenue appointed under this Ordinance; authorized representative ( 獲授權代表 ) means a person authorized in writing by any other person to act on his behalf for the purposes of this Ordinance; (Replaced 7 of 1975 s. 2 ) banking business ( 銀行業務 ) has the meaning given by section 2(1) of the Banking Ordinance ( Cap. 155 ); (Added 22 of 2016 s. 3 ) banking LAC requirement ( 銀行LAC規定 ) means a LAC requirement as defined by rule 2(1) of the Financial Institutions (Resolution) (Loss-absorbing Capacity Requirements—Banking Sector) Rules ( Cap. 628 sub. leg. B ); (Added 4 of 2019 s. 3 . Amended E.R. 6 of 2019 ) basis period ( 評稅基期 ) for any year of assessment is the period on the income or the profits of which tax for that year ultimately falls to be computed; (Amended 36 of 1955 s. 3 ) bill of sale ( 賣據 ) means a bill of sale registrable under the Bills of Sale Ordinance ( Cap. 20 ); Board of Review ( 稅務上訴委員會 ) means the Board of Review referred to in section 65 ; (Added 4 of 2010 s. 2 ) body of persons ( 團體 ) means any body politic, corporate or collegiate and any company, fraternity, fellowship and society of persons whether corporate or not corporate; (Added 36 of 1955 s. 3 ) business ( 業務 ) includes agricultural undertaking, poultry and pig rearing and the letting or sub-letting by any corporation to any person of any premises or portion thereof, and the sub-letting by any other person of any premises or portion of any premises held by him under a lease or tenancy other than from the Government; (Replaced 35 of 1965 s. 2 . Amended 19 of 1996 s. 15 ) certificate of deposit ( 存款證 ) means a document relating to money, in any currency, which has been deposited with the issuer or some other person, being a document which recognizes an obligation to pay a stated amount to bearer or to order, with or without interest, and being a document by the delivery of which, with or without endorsement, the right to receive that stated amount, with or without interest, is transferable, and, in the case of any such document which is a prescribed instrument by virtue of paragraph (a) of the definition of prescribed instrument ( 訂明的票據 ) in section 137B of the Banking Ordinance ( Cap. 155 ), includes any right or interest referred to in paragraph (b) of that definition in respect of such document; (Added 30 of 1981 s. 2 . Amended 94 of 1993 s. 36 ) Commissioner ( 局長 ) means the Commissioner of Inland Revenue appointed under this Ordinance; (Replaced 26 of 1969 s. 3 ) Commissioner for I&T ( 創科署署長 ) means the Commissioner for Innovation and Technology; (Added 29 of 2018 s. 3 ) common parts ( 公用部分 ), in relation to any land or buildings or land and buildings— (a) means the whole of the land or buildings or land and buildings, except such parts as have been specified or designated in an instrument registered in the Land Registry as being for the exclusive use, occupation or enjoyment of an owner; and (b) includes, unless so specified or designated in the instrument mentioned in paragraph (a), those parts of a building specified in Schedule 1 to the Building Management Ordinance ( Cap. 344 ); (Added 4 of 2010 s. 2 ) conditional sale agreement ( 有條件售賣協議 ) means an agreement for the sale of goods under which the purchase price or part of the purchase price is payable by instalments, and the property in the goods remains in the seller (notwithstanding that the buyer is to be in possession of the goods) until such conditions as to the payment of instalments or otherwise as may be specified in the agreement are fulfilled; (Added 32 of 1998 s. 3 ) corporation ( 法團 )— (a) means any company that is either incorporated or registered under any enactment or charter in force in Hong Kong or elsewhere; and (b) includes— (i) Lloyd’s; and (ii) an approved association of underwriters; but (c) does not include a co-operative society or a trade union; (Replaced 15 of 2020 s. 3 ) debenture ( 債權證 ), in relation to a corporation, includes debenture stock, bond and any other debt security of the corporation, whether or not constituting a charge on the assets of the corporation; (Replaced 12 of 2016 s. 11 ) deposit ( 存款 ) means a deposit as defined in section 2(1) of the Banking Ordinance ( Cap. 155 ); (Added 29 of 1982 s. 2 . Amended 27 of 1986 s. 137 ) deputy commissioner ( 副局長 ) means a deputy commissioner of Inland Revenue appointed under this Ordinance; (Amended 48 of 1995 s. 2 ) digital signature ( 數碼簽署 ) has the same meaning as in section 2(1) of the Electronic Transactions Ordinance ( Cap. 553 ); (Added 5 of 2003 s. 2 ) electronic record ( 電子紀錄 ) has the same meaning as in section 2(1) of the Electronic Transactions Ordinance ( Cap. 553 ); (Added 5 of 2003 s. 2 ) executor ( 遺囑執行人 ) means any executor, administrator, or other person administering the estate of a deceased person, and includes a trustee acting under a trust created by the last will of the author of the trust; financial institution ( 財務機構 ), except in Part 8A and Schedules 17C and 17D , means— (Amended 22 of 2016 s. 3 ) (a) an authorized institution within the meaning of section 2 of the Banking Ordinance ( Cap. 155 ); (b) any associated corporation of such an authorized institution which, being exempt by virtue of section 3(2)(a) or (b) or (c) of the Banking Ordinance ( Cap. 155 ), would have been liable to be authorized as a deposit-taking company or restricted licence bank under that Ordinance had it not been so exempt; (Replaced 27 of 1986 s. 137 . Amended 3 of 1990 s. 55 ; 49 of 1995 s. 53 ) foreign DMTT ( 外地當地最低補足稅 ) means a minimum tax that is included in the domestic law of a territory outside Hong Kong and implemented and administered in that territory and that— (a) is a QDMTT; or (b) would have been a QDMTT but for either or both of paragraphs (c) and (d) of the definition of qualified domestic minimum top-up tax in Article 10.1.1 of the GloBE rules; (Added 21 of 2025 s. 3 ) foreign IIR top-up tax ( 外地收入納入規則補足稅 ) means a tax under an IIR, as defined by Article 10.1.1 of the GloBE rules, implemented and administered in a territory outside Hong Kong (whether or not a qualified IIR); (Added 21 of 2025 s. 3 ) foreign UTPR top-up tax ( 外地低稅利潤規則補足稅 ) means a tax under a UTPR, as defined by Article 10.1.1 of the GloBE rules, implemented and administered in a territory outside Hong Kong (whether or not a qualified UTPR); (Added 21 of 2025 s. 3 ) GloBE rules ( 《全球反侵蝕稅基規則》 ) has the meaning given by section 26AD(1) ; (Added 21 of 2025 s. 3 ) grandparent or grandparent of his or her spouse ( 該人的或其配偶的祖父母或外祖父母 ), in relation to any person, means— (a) a natural grandfather or grandmother of the person or his or her spouse; (b) an adoptive grandparent of the person or his or her spouse (whether an adoptive parent of a natural parent, adoptive parent or step parent of the person or his or her spouse, or a natural parent of an adoptive parent of the person or his or her spouse); (c) a step grandparent of the person or his or her spouse (whether a step parent of a natural parent, adoptive parent or step parent of the person or his or her spouse, or a natural parent of a step parent of the person or his or her spouse); or (d) in the case of a deceased spouse, a person who would have been the grandparent of the person’s spouse by reason of any of the provisions of paragraphs (a) to (c) if the spouse had not died; (Added 31 of 1998 s. 3 ) hire-purchase agreement ( 租購協議 ) means an agreement for the bailment of goods under which the bailee may buy the goods, or under which the property in the goods will or may pass to the bailee; (Added 32 of 1998 s. 3 ) HKMTT ( 香港最低補足稅 )—see section 26AE(4) ; (Added 21 of 2025 s. 3 ) Hong Kong currency ( 港幣 ) means money which is legal tender in Hong Kong; (Added 29 of 1982 s. 2 ) husband ( 丈夫 ) means a married man whose marriage is a marriage within the meaning of this section; (Added 43 of 1989 s. 2 ) IIR top-up tax ( 收入納入規則補足稅 )—see section 26AE(2) ; (Added 21 of 2025 s. 3 ) incapacitated person ( 無行為能力的人 ) means any minor, lunatic, idiot, or person of unsound mind; inspector ( 稅務督察 ) means an inspector appointed under this Ordinance; (Added 36 of 1955 s. 3 ) LAC banking entity ( LAC銀行實體 ) means— (a) an HK affiliated operational entity, as defined by rule 2(1) of the Financial Institutions (Resolution) (Loss-absorbing Capacity Requirements—Banking Sector) Rules ( Cap. 628 sub. leg. B ), that is required to meet a banking LAC requirement under those Rules; or (Amended E.R. 6 of 2019 ) (b) a clean HK holding company, as defined by rule 2(1) of those Rules, that is required to meet a banking LAC requirement under those Rules; (Added 4 of 2019 s. 3 ) lease ( 租約 ), except in Subdivisions 4 and 5 of Division 2 of Part 4 and Schedules 17F and 17FA , in relation to any machinery or plant, includes— (Amended 9 of 2017 s. 3 ; 5 of 2020 s. 3 ; 10 of 2022 s. 2 ) (a) any arrangement under which a right to use the machinery or plant is granted by the owner of the machinery or plant to another person; and (b) any arrangement under which a right to use the machinery or plant, being a right derived directly or indirectly from a right referred to in paragraph (a), is granted by a person to another person, but does not include a hire-purchase agreement or a conditional sale agreement unless, in the opinion of the Commissioner, the right under the agreement to purchase or obtain the property in the goods would reasonably be expected not to be exercised; (Added 32 of 1998 s. 3 ) limited partnership ( 有限責任合夥 ) has the same meaning as in section 3 of the Limited Partnerships Ordinance ( Cap. 37 ); (Added 47 of 1992 s. 2 ) limited partnership fund ( 有限合夥基金 ) has the meaning given by section 2 of the Limited Partnership Fund Ordinance ( Cap. 637 ); (Added 14 of 2020 s. 107 . Amended E.R. 5 of 2020 ) Lloyd’s ( 勞合社 ) has the meaning given by section 2(1) of the Insurance Ordinance ( Cap. 41 ); (Added 15 of 2020 s. 3 ) mandatory contributions ( 強制性供款 ), in relation to a mandatory provident fund scheme, means mandatory contributions paid to the scheme in accordance with the Mandatory Provident Fund Schemes Ordinance ( Cap. 485 ); (Added 4 of 1998 s. 6 ) mandatory provident fund scheme ( 強制性公積金計劃 ) means a provident fund scheme registered under the Mandatory Provident Fund Schemes Ordinance ( Cap. 485 ); (Added 4 of 1998 s. 6 ) marriage ( 婚姻 ) means— (a) any marriage recognized by the law of Hong Kong; or (b) any marriage, whether or not so recognized, entered into outside Hong Kong according to the law of the place where it was entered into and between persons having the capacity to do so, but shall not, in the case of a marriage which is both potentially and actually polygamous, include marriage between a man and any wife other than the principal wife, and married ( 結婚 ) shall be construed accordingly; (Added 43 of 1989 s. 2 ) Monetary Authority ( 金融管理專員 ) means the Monetary Authority appointed under section 5A(1) of the Exchange Fund Ordinance ( Cap. 66 ); (Added 9 of 2021 s. 3 ) mortgage ( 按揭 ) means a security by way of mortgage or equitable mortgage for the payment of any definite and certain sum of money advanced or lent at the time, or previously due and owing, or forborne to be paid, being payable, or for the repayment of money thereafter to be lent, advanced or paid, or which may become due upon an account current, together with any sum already advanced or due, or without, as the case may be, and includes— (a) conditional surrender by way of mortgage, or further charge, of or affecting any property whatsoever; and (b) any conveyance of any property whatsoever in trust to be sold or otherwise converted into money, intended only as a security, and redeemable before the sale or other disposal thereof, either by express stipulation or otherwise; and (c) any instrument for defeating or making redeemable, or explaining or qualifying any conveyance, transfer or disposition of any property whatsoever, apparently absolute, but intended only as a security; and (d) any instrument relating to the deposit of any title deeds or instruments constituting or being evidence of the title to any property whatsoever or creating a charge on any property whatsoever; and (e) any mortgage by an equitable owner of his equitable rights; and (f) any warrant of attorney to enter up judgment; (Replaced 79 of 1979 s. 2 ) [cf. 1891 c. 39 s. 86 U.K.] net chargeable income ( 應課稅入息實額 ) means net chargeable income calculated in accordance with section 12B ; (Added 71 of 1983 s. 2 ) occupational retirement scheme ( 職業退休計劃 ) has the meaning assigned to it by section 2(1) of the Occupational Retirement Schemes Ordinance ( Cap. 426 ); (Added 76 of 1993 s. 2 ) open-ended fund company ( 開放式基金型公司 ) has the meaning given by section 112A of the Securities and Futures Ordinance ( Cap. 571 ); (Added 16 of 2016 s. 25 ) owner ( 擁有人 ), in respect of land or buildings or land and buildings, includes— (a) a person holding the land or buildings or land and buildings directly from the Government; (b) a beneficial owner; (c) a tenant for life; (d) a mortgagor; (e) a mortgagee in possession; (f) a person with adverse title to land receiving rent from buildings or other structures erected on that land; (g) a person who is making payments to a co-operative society registered under the Co-operative Societies Ordinance ( Cap. 33 ) for the purpose of the purchase of the land or buildings or land and buildings; (h) a person who holds land or buildings or land and buildings subject to a ground rent or other annual charge; (i) (in so far as common parts are concerned) a corporation registered under section 8 of the Building Management Ordinance ( Cap. 344 ) or a person who, on the person’s own behalf or on behalf of another person, receives any consideration, in money or money’s worth, in respect of the right of use of any common parts solely or with another; and (j) an executor of the estate of an owner; (Replaced 4 of 2010 s. 2 ) parent or parent of his or her spouse ( 該人的或其配偶的父或母 ), in relation to any person, means— (a) a parent of whose marriage the person or his or her spouse is the child; (b) the natural father or mother of the person or his or her spouse; (c) a parent by whom the person or his or her spouse was adopted; (d) a step parent of the person or his or her spouse; or (e) in the case of a deceased spouse, a person who would have been the parent of the person’s spouse by reason of any of the provisions of paragraphs (a) to (d) if the spouse had not died; (Added 31 of 1998 s. 3 ) password ( 通行密碼 ) means any combination of letters, characters, numbers or other symbols selected by a person and approved by the Commissioner for use in systems designated by the Commissioner for the purpose of authenticating the person’s identification in communicating with the Commissioner in relation to a return required to be furnished under this Ordinance; (Added 5 of 2003 s. 2 ) person ( 人 、 人士 ) includes a corporation, partnership, trustee, whether incorporated or unincorporated, or body of persons; (Amended 2 of 1971 s. 2 ; 30 of 1981 s. 2 ) precedent partner ( 首合夥人 ) means the partner who, of the active partners resident in Hong Kong— (a) is first named in the agreement of partnership; or (b) if there is no agreement, is specified by name or initials singly or with precedence to the other partners in the usual name of the partnership; or (c) is first named in any statutory statement of the names of the partners; profits arising in or derived from Hong Kong ( 於香港產生或得自香港的利潤 ) for the purposes of Part 4 shall, without in any way limiting the meaning of the term, include all profits from business transacted in Hong Kong, whether directly or through an agent; profits tax ( 利得稅 )— (a) in this Ordinance (except in a reference to profits tax under Part 4 (however worded) or to provisional profits tax), means, subject to paragraph (b)— (i) profits tax under Part 4 (including provisional profits tax under Part 10B ); or (ii) top-up tax under Part 4AA ; or (b) in Parts 4 , 7 , 8AA , 8A , 9A and 10B and Schedules relating to provisions of those Parts, in sections 50AAA and 50AAAB and Schedule 54 , in section 59(1B) , (1C) and (1D) and in Schedules 16D and 16E , means profits tax under Part 4 (including provisional profits tax under Part 10B ); (Added 21 of 2025 s. 3 ) QDMTT ( 合資格當地最低補足稅 ) means a qualified domestic minimum top-up tax as defined by Article 10.1.1 of the GloBE rules; (Added 21 of 2025 s. 3 ) qualified IIR ( 合資格收入納入規則 ) has the meaning given by Article 10.1.1 of the GloBE rules; (Added 21 of 2025 s. 3 ) qualified UTPR ( 合資格低稅利潤規則 ) has the meaning given by Article 10.1.1 of the GloBE rules; (Added 21 of 2025 s. 3 ) receiver ( 接管人 ) includes any receiver, provisional liquidator or liquidator, and any assignee, trustee, or other person having the possession or control of the property of any person by reason of insolvency or bankruptcy; (Amended 16 of 2016 s. 25 ) recognized certificate ( 認可證書 ) has the same meaning as in section 2(1) of the Electronic Transactions Ordinance ( Cap. 553 ); (Added 5 of 2003 s. 2 ) recognized occupational retirement scheme ( 認可職業退休計劃 ) means an occupational retirement scheme— (a) which, prior to the commencement * of section 2 of the Inland Revenue (Amendment) (No. 5) Ordinance 1993 ( 76 of 1993 ), was a retirement scheme approved by the Commissioner under section 87A where such approval has not subsequently been withdrawn; (b) registered for the time being under section 18 of the Occupational Retirement Schemes Ordinance ( Cap. 426 ); (c) in respect of which an exemption certificate has been issued under section 7(1) of the Occupational Retirement Schemes Ordinance ( Cap. 426 ) and has not been withdrawn; (d) which is operated by an employer who is— (i) the government of a country or territory outside Hong Kong; or (ii) any agency or undertaking of or by such a government which is not operated for the purpose of gain; or (Amended 19 of 1996 s. 3 ) (e) contained in or otherwise established by an Ordinance other than the Mandatory Provident Fund Schemes Ordinance ( Cap. 485 ); (Added 76 of 1993 s. 2 . Amended 4 of 1998 s. 6 ) recognized retirement scheme ( 認可退休計劃 ) means— (a) a recognized occupational retirement scheme; or (b) a mandatory provident fund scheme; (Added 31 of 1998 s. 3 ) re-domiciled company ( 經遷冊公司 ) has the meaning given by section 2(1) of the Companies Ordinance ( Cap. 622 ); (Added 14 of 2025 s. 144 ) regulatory capital security ( 監管資本證券 ) has the meaning given by section 17A; (Added 12 of 2016 s. 11 ) reportable account ( 須申報帳户 ) has the meaning given by section 50A ; (Added 22 of 2016 s. 3 ) reportable jurisdiction ( 申報稅務管轄區 ) has the meaning given by section 50A ; (Added 22 of 2016 s. 3 ) reporting financial institution ( 申報財務機構 ) has the meaning given by section 50A ; (Added 22 of 2016 s. 3 ) return ( 報稅表 ) includes any return furnished under section 51AA , irrespective of the manner in which that return is furnished; (Added 5 of 2003 s. 2 ) river trade limits ( 內河航限 ) has the same meaning as in the Merchant Shipping Ordinance ( Cap. 281 ); (Added 47 of 1992 s. 2 ) service provider ( 服務提供者 )— (a) except in relation to a provision of Part 9 or 9A or Schedule 63 —has the meaning given by section 50A(1) ; (b) in relation to a provision of Part 9 —has the meaning given by section 51AAD(8) ; (c) in relation to a provision of Part 9A —has the meaning given by section 58B(2) ; or (d) in relation to a provision of Schedule 63 —has the meaning given by section 2 of that Schedule; (Replaced 21 of 2025 s. 3 ) specified form ( 指明的格式 ) means a form specified under section 86 ; (Added 43 of 1989 s. 2 . Amended 5 of 2003 s. 2 ) spouse ( 配偶 ) means a husband or wife; (Added 43 of 1989 s. 2 ) standard rate ( 標準稅率 ) means the rate specified in Schedule 1 ; (Added 30 of 1950 Schedule) tax ( 稅 、 稅款 、 稅項 ) except for the purposes of Parts 12 and 13 , means any tax imposed by this Ordinance (including provisional salaries tax charged under Part 10A , provisional profits tax charged under Part 10B and provisional property tax charged under Part 10C ) other than additional tax, but for the purposes of Parts 12 and 13 tax (稅、稅款、稅項) includes additional tax; (Replaced 26 of 1969 s. 3 . Amended 8 of 1973 s. 2 ; 7 of 1975 s. 2 ; 8 of 1983 s. 2 ) telefiling system ( 電話報稅系統 ) means a system that enables a person to furnish to the Commissioner certain returns or information by using a telephone; (Added 5 of 2003 s. 2 ) top-up tax ( 補足稅 ) means— (a) IIR top-up tax; (b) UTPR top-up tax; or (c) HKMTT; (Added 21 of 2025 s. 3 ) trade ( 行業 、 生意 ) includes every trade and manufacture, and every adventure and concern in the nature of trade; trustee ( 受託人 ) includes any trustee, guardian, curator, manager, or other person having the direction, control, or management of any property on behalf of any person, but does not include an executor; UTPR top-up tax ( 低稅利潤規則補足稅 )—see section 26AE(2) ; (Added 21 of 2025 s. 3 ) voluntary contributions ( 自願性供款 ), in relation to a mandatory provident fund scheme, means voluntary contributions paid to the scheme in accordance with section 11 of the Mandatory Provident Fund Schemes Ordinance ( Cap. 485 ); (Added 4 of 1998 s. 6 ) wife ( 妻子 ) means a married woman whose marriage is a marriage within the meaning of this section; (Replaced 43 of 1989 s. 2 ) year of assessment ( 課稅年度 ) means the period of 12 months commencing on 1 April in any year; (Replaced 30 of 1950 Schedule) year preceding a year of assessment ( 任何課稅年度的上一年 ) means the period of 12 months ending on 31 March immediately prior to such year of assessment. (Amended 36 of 1955 s. 3 ; 9 of 1958 s. 2 ; 26 of 1969 s. 3 ; 7 of 1986 s. 12 ; 76 of 1993 s. 2 ; 12 of 1999 s. 3 ; 10 of 2022 s. 2 ) (2) For the purposes of the definition of financial institution ( 財務機構 ) in subsection (1)— associated corporation ( 相聯法團 ), in relation to an authorized institution, means— (a) a corporation over which the institution has control; (b) a corporation which has control over the institution; or (c) a corporation which is under the control of the same person as is the institution; (Replaced 49 of 1995 s. 53 ) control ( 控制 ), in relation to a corporation, means the power of a person to secure— (a) by means of the holding of shares or the possession of voting power in or in relation to that or any other corporation; or (b) by virtue of any powers conferred by the articles of association or other document regulating that or any other corporation, that the affairs of the first-mentioned corporation are conducted in accordance with the wishes of that person. (Added 73 of 1978 s. 2 ) (2A) For the purposes of the definition of recognized occupational retirement scheme ( 認可職業退休計劃 ) in subsection (1)— (a) a scheme which is registered for the time being under section 18 of the Occupational Retirement Schemes Ordinance ( Cap. 426 ) shall upon registration be regarded as a recognized occupational retirement scheme as from— (i) the date on which the application for such registration was made; or (ii) the date on which the terms of the scheme came into effect, whichever is the earlier; and (b) a scheme in respect of which an exemption certificate has been issued under section 7(1) of the Occupational Retirement Schemes Ordinance ( Cap. 426 ) and has not been withdrawn shall upon the issue of the certificate be regarded as a recognized occupational retirement scheme as from— (i) the date on which the application for the certificate was made; or (ii) the date on which the terms of the scheme came into effect, whichever is the earlier: Provided that if such date is earlier than the first commencement date of the Occupational Retirement Schemes Ordinance ( Cap. 426 ), the scheme shall be regarded as a recognized occupational retirement scheme as from such commencement date. (Added 76 of 1993 s. 2 ) (3) For the purposes of this Ordinance a husband and wife shall be deemed to be living apart when they are living apart— (a) under a decree or order of a competent court in or outside Hong Kong; (b) under a duly executed deed of separation or any instrument of similar effect; or (c) in such circumstances that the Commissioner is of the opinion the separation is likely to be permanent. (Added 43 of 1989 s. 2 ) (4) Whether or not a person who is or was formerly a member of a mandatory provident fund scheme has permanently departed from Hong Kong is, for the purposes of this Ordinance, to be determined by reference to regulations in force under the Mandatory Provident Fund Schemes Ordinance ( Cap. 485 ). (Added 4 of 1998 s. 6 ) (5) In this Ordinance, a reference to the act of signing a return required to be furnished under this Ordinance includes a reference to— (a) the affixing of a digital signature to; or (Amended 14 of 2004 s. 29 ) (b) the inclusion of a password with, the return for the purpose of authenticating or approving it. (Added 5 of 2003 s. 2 ) (6) For the purposes of subsection (5)(a) , a digital signature shall be— (a) supported by a recognized certificate; (b) generated within the validity of that certificate; and (c) used in accordance with the terms of that certificate. (Added 14 of 2004 s. 29 ) (7) For the purposes of subsection (6)(a) , a digital signature is taken to be supported by a recognized certificate if it is taken to be supported by that certificate under section 2(2) of the Electronic Transactions Ordinance ( Cap. 553 ). (Added 14 of 2004 s. 29 ) (8) In subsection (6)(b) , within the validity of that certificate (在該證書的有效期內) has the meaning assigned to it by section 6(2) of the Electronic Transactions Ordinance ( Cap. 553 ). (Added 14 of 2004 s. 29 ) (9) A reference in this Ordinance to a company or entity established or incorporated in Hong Kong includes a re-domiciled company. (Added 14 of 2025 s. 144 ) (10) A reference in this Ordinance (other than sections 17A and 50A ) to a company or entity established or incorporated outside Hong Kong does not include a re-domiciled company. (Added 14 of 2025 s. 144 ) # (11) Unless otherwise provided by this Ordinance, an entity is a tax resident in Hong Kong if— (a) where the entity is a company—the entity is incorporated in Hong Kong or, if incorporated outside Hong Kong, normally managed or controlled in Hong Kong; or (b) in any other case—the entity is constituted under the laws of Hong Kong or, if otherwise constituted, normally managed or controlled in Hong Kong. (Added 21 of 2025 s. 3 ) (Amended E.R. 1 of 2012 ) Editorial Note: * Commencement date: 19 November 1993. # Section 2(11), added by section 3(3) of 21 of 2025 , is deemed to have come into operation on 1 January 2024—see section 1(3) of 21 of 2025 . 3. Establishment of Board of Inland Revenue. Power of Chief Executive to appoint a Commissioner and other officers (1) (a) There shall be a Board of Inland Revenue composed of the Financial Secretary and 4 other members appointed by the Chief Executive, of whom not more than one shall be an official in the employment of the Government. A member so appointed shall hold office until he shall resign or be removed from office by the Chief Executive. (Amended 12 of 1999 s. 3 ) (aa) The Board of Inland Revenue shall have a secretary who shall be a deputy commissioner. (Added 8 of 1983 s. 3 . Amended 48 of 1995 s. 3 ) (b) 3 members of the Board of Inland Revenue shall form a quorum for the transaction of business and when the Financial Secretary is present he shall be the chairman. (c) All matters coming before the Board of Inland Revenue shall be decided by a majority of votes, and in the case of an equality of votes the chairman or presiding member shall have a second or a casting vote. (d) The Board of Inland Revenue may transact any of its business by the circulation of papers without meeting; and a resolution signed by a majority of the members shall be as valid and effective as if it had been passed at a meeting by the votes of the members so signing. (Added 8 of 1983 s. 3 ) (2) For the purposes of this Ordinance, the Chief Executive may appoint a Commissioner, deputy commissioners, assistant commissioners, assessors and inspectors. (Amended 36 of 1955 s. 4 ; 48 of 1995 s. 3 ; 12 of 1999 s. 3 ) (3) An assistant commissioner exercising or performing any power, duty, or function of the Commissioner under this Ordinance shall be deemed for all purposes to be authorized to exercise or perform the same until the contrary is proved. (4) All powers conferred upon an assessor by this Ordinance may be exercised by an assistant commissioner. 3A. Exercise of powers and duties (1) Where under this Ordinance any power is conferred or any duty is imposed on the Commissioner and so long as it is not provided that the power or duty shall be exercised or performed by the Commissioner personally, such power may be exercised or such duty may be performed by a deputy commissioner or by an assistant commissioner. (Amended 48 of 1995 s. 4 ) (2) Except where a provision of this Ordinance provides that a power or duty shall be exercised or performed by the Commissioner personally, the Commissioner may, subject to such limitations as he may think fit, authorize in writing any public officer to exercise any power or perform any duty conferred or imposed upon him by this Ordinance. (Added 26 of 1969 s. 4 ) 4. Official secrecy (1) Except in the performance of his duties under this Ordinance, every person who has been appointed under or who is or has been employed in carrying out or in assisting any persons to carry out the provisions of this Ordinance shall preserve and aid in preserving secrecy with regard to all matters relating to the affairs of any person that may come to his knowledge in the performance of his duties under this Ordinance, and shall not communicate any such matter to any person other than the person to whom such matter relates or his executor or the authorized representative of such person or such executor, nor suffer or permit any person to have access to any records in the possession, custody or control of the Commissioner. (Amended 9 of 1958 s. 3 ) (2) Every person appointed under or employed in carrying out the provisions of this Ordinance, shall before acting under this Ordinance take and subscribe before a commissioner for oaths an oath of secrecy in such form as the Board of Inland Revenue may specify. (Amended 39 of 1969 s. 2 ; 47 of 1997 s. 10 ) (3) No person appointed under or employed in carrying out the provisions of this Ordinance shall be required to produce in any court any return, document, or assessment, or to divulge or communicate to any court any matter or thing coming under his notice in the performance of his duties under this Ordinance, except as may be necessary for the purpose of carrying into effect the provisions of this Ordinance. (4) Notwithstanding anything contained in this section, the Commissioner or any officer of the Inland Revenue Department authorized by the Commissioner in that behalf may communicate any matter which comes to his knowledge, including a copy of any return, accounts or other document submitted to him in connection with this Ordinance— (a) to the Commissioner of Rating and Valuation, to the Collector of Stamp Revenue, or to the Estate Duty Commissioner; (Amended 20 of 1948 s. 4 ; 29 of 2018 s. 4 ) (b) (Repealed 12 of 1999 s. 3 ) (c) to the Secretary for Justice, or a public officer authorized by the Secretary for Justice, for the purpose of reporting under section 68(5) an appeal to the Board of Review; (Added 2 of 1971 s. 3 . Amended 79 of 1992 s. 10 ; L.N. 362 of 1997 ; 29 of 2018 s. 4 ) (d) to any person appointed under or employed in carrying out the provisions of the Business Registration Ordinance ( Cap. 310 ), as regards any matter required to be notified to the Commissioner pursuant to section 8 of that Ordinance by the person submitting such return, accounts or other document; (Added 79 of 1992 s. 10 . Amended 13 of 2010 s. 26 ; 29 of 2018 s. 4 ; 9 of 2021 s. 4 ) (e) to the Commissioner for I&T, or a public officer authorized by the Commissioner for I&T, for the purpose of seeking advice under section 18 of Schedule 45 ; or (Added 29 of 2018 s. 4 . Amended 9 of 2021 s. 4 ) (f) to the Monetary Authority, or an officer authorized by the Monetary Authority, for the purpose of seeking advice under section 12 of Schedule 16D. (Added 9 of 2021 s. 4 ) (5) Notwithstanding anything contained in this section, the Commissioner may permit the Director of Audit or any officer of that department duly authorized by the Director of Audit in that behalf to have such access to any records or documents as may be necessary for the performance of his official duties. The Director of Audit or any officer so authorized shall be deemed to be a person employed in carrying out the provisions of this Ordinance for the purpose of subsection (2). (6) Notwithstanding anything contained in this section, where the Commissioner is of the opinion that any tax deemed to be in default under the provisions of section 71(1) has for the time being become irrecoverable, he may communicate to the Financial Secretary the names and descriptions of the persons charged with such tax together with particulars of the tax in default. (Added 9 of 1958 s. 3 ) (7) Despite anything contained in this section, the Commissioner, or any officer of the Inland Revenue Department authorized by the Commissioner in that behalf, may communicate to any entity or permanent establishment of an MNE group any matter that comes to his or her knowledge in connection with the implementation of the GloBE rules and HKMTT under Part 4AA , if doing so is necessary for— (a) the determination of the amount (if any) of top-up tax payable by, or chargeable in respect of the income of, any entity or permanent establishment of the MNE group; or (b) the performance of duties under this Ordinance involving top-up tax. (Added 21 of 2025 s. 4 ) (8) In subsection (7), entity ( 實體 ), MNE group ( 跨國企業集團 ) and permanent establishment ( 常設機構 ) have the same meanings as they have in the GloBE rules. (Added 21 of 2025 s. 4 ) (Amended 9 of 1958 s. 3 ) Part 2 Property Tax 5. Charge of property tax (1) Property tax shall, subject to the provisions of this Ordinance, be charged for each year of assessment on every person being the owner of any land or buildings or land and buildings wherever situate in Hong Kong and shall be computed at the standard rate on the net assessable value of such land or buildings or land and buildings for each such year. (Amended 35 of 1965 s. 3 ; 76 of 1975 s. 3 ; 8 of 1983 s. 4 ; 7 of 1986 s. 12 ) Provided that— (a) (Repealed 76 of 1975 s. 3 ) (b) where the owner of the land is not the owner of the buildings thereon, separate assessments shall be made for the land and for the buildings; (c) (Repealed 26 of 1969 s. 5 ) (d) (Repealed 76 of 1975 s. 3 ) (e) (Repealed 56 of 1993 s. 2 ) (Replaced 36 of 1955 s. 6 ) (1A) In subsection (1), net assessable value ( 應評稅淨值 ) means the assessable value of land or buildings or land and buildings, ascertained in accordance with section 5B — (a) (Repealed 56 of 1993 s. 2 ) (b) less— (i) where the owner agrees to pay the rates in respect of the land or buildings or land and buildings, those rates paid by him; and (ii) an allowance for repairs and outgoings of 20% of that assessable value after deduction of any rates under subparagraph (i). (Added 76 of 1975 s. 3 . Amended 8 of 1983 s. 4 ; 56 of 1993 s. 2 ) (1B) The percentage allowance specified in subsection (1A) may be amended by resolution of the Legislative Council. (Added 76 of 1975 s. 3 ) (2) (a) Notwithstanding subsection (1), any corporation carrying on a trade, profession or business in Hong Kong shall, on application made in writing to the Commissioner and on proof of the facts to the satisfaction of the Commissioner, be entitled to exemption from the property tax for any year of assessment in respect of any land or buildings or land and buildings owned by the corporation where the corporation would be entitled under section 25 to a set-off of the property tax which, if exemption were not granted under this subsection, would be paid by the corporation; and the property shall be and remain exempted from property tax for each year of assessment in which the circumstances are such as to qualify the property for such exemption for that year. (Amended 7 of 1986 s. 12 ; 56 of 1993 s. 2 ) (b) (Repealed 56 of 1993 s. 2 ) (c) Every corporation exempted from property tax under this subsection in respect of any land or buildings or land and buildings shall, within 30 days after the event, notify the Commissioner in writing of any change in the ownership or use thereof or in any other circumstances affecting such exemption. (Added 35 of 1965 s. 3 ) (2A)-(5) (Repealed 56 of 1993 s. 2 ) 5A. (Repealed 56 of 1993 s. 3 ) 5B. Ascertainment of assessable value on or after 1 April 1983 (1) This section shall apply to any year of assessment commencing or after 1 April 1983. (Amended 56 of 1993 s. 4 ) (2) The assessable value of land or buildings or land and buildings for each year of assessment shall be the consideration, in money or money’s worth, payable in that year to, to the order of, or for the benefit of, the owner in respect of the right of use of that land or buildings or land and buildings. (3) Any consideration payable before the year of assessment commencing on 1 April 1983 in respect of a period of the right of use which starts after, or extends beyond, 1 April 1983 shall, for the purposes of this section, be deemed to be payable in equal monthly instalments during the period of the right of use or during a period of 3 years ending on 31 March 1986, whichever is the shorter. (4) Any consideration payable in respect of a period of the right of use which is not contained within any one year of assessment shall, for the purposes of this section, be deemed to be payable in equal monthly instalments during the period of the right of use or during a period of 3 years commencing at the start of the period of the right of use to which the consideration relates, whichever is the shorter. (5) (Repealed 56 of 1993 s. 4 ) (6) In this section, consideration ( 代價 ) includes any consideration payable in respect of the provision of any services or benefits connected with or related to the right of use. (7) Section 22 of Schedule 17A (specified alternative bond scheme and its treatment under this Ordinance (other than Part 4AA )) provides for modifications to this section. (Added 10 of 2013 s. 5 . Amended 21 of 2025 s. 33 ) (Added 8 of 1983 s. 6 ) 6. (Repealed 8 of 1983 s. 7 ) 7. (Repealed 56 of 1993 s. 5 ) 7A. Interpretation In this Part— buildings ( 建築物 ), except for the purposes of section 5(2) , includes any part of a building; (Replaced 35 of 1965 s. 4 . Amended 56 of 1993 s. 6 ) land or buildings or land and buildings ( 土地或建築物或土地連建築物 ) includes piers, wharves and other structures; occupied ( 佔用 ), in relation to land or buildings or land and buildings, means land or buildings or land and buildings which are being put to beneficial use. (Replaced 76 of 1975 s. 6 ) (Added 36 of 1955 s. 9 ) 7B. (Repealed 56 of 1993 s. 7 ) 7C. Bad debts (1) In ascertaining the assessable value of any land or buildings or land and buildings under this Part for any year of assessment commencing on or after 1 April 1983, there shall be deducted any consideration in money or money’s worth, payable or deemed to be payable on or after 1 April 1983 to, to the order of, or for the benefit of, the owner in respect of the right of use of that land or buildings or that land and buildings and proved to the satisfaction of the assessor to have become irrecoverable during that year of assessment. (2) Consideration previously deducted as irrecoverable and recovered during any year of assessment shall be treated as consideration mentioned in section 5B(2) payable in that year of assessment in respect of the right of use of the land or buildings or land and buildings in respect of which that consideration was payable. (3) Notwithstanding section 70 , where a person is entitled to deduct any consideration under subsection (1) but the land or buildings or land and buildings has no or insufficient assessable value from which to deduct that consideration in the year of assessment in which, under that subsection, that consideration is deductible, that consideration, or that consideration to the extent to which it cannot be deducted in that year, shall be deducted from the assessable value of that land or buildings or that land and buildings in the latest year of assessment in which that assessable value is sufficient. (Added 8 of 1983 s. 9 ) 7D. Part 8AA applies Part 8AA applies for the purposes of calculation of property tax. (Added 27 of 2018 s. 11 ) Part 3 Salaries Tax (Amended 36 of 1955 s. 10 ) 8. Charge of salaries tax (1) Salaries tax shall, subject to the provisions of this Ordinance, be charged for each year of assessment on every person in respect of his income arising in or derived from Hong Kong from the following sources— (a) any office or employment of profit; and (b) any pension. (1A) For the purposes of this Part, income arising in or derived from Hong Kong from any employment— (a) includes, without in any way limiting the meaning of the expression and subject to paragraph (b), all income derived from services rendered in Hong Kong including leave pay attributable to such services; (Amended 69 of 1987 s. 2 ) (b) subject to subsection (1AB), excludes income derived from services rendered by a person who— (Amended 6 of 2019 s. 10 ) (i) is not employed by the Government or as master or member of the crew of a ship or as commander or member of the crew of an aircraft; and (ii) renders outside Hong Kong all the services in connection with his employment; and (Added 2 of 1971 s. 5 . Amended 69 of 1987 s. 2 ) (c) subject to subsection (1C) and section 50AA , excludes income derived by a person from services rendered by him in any territory outside Hong Kong where— (Amended 27 of 2018 s. 3 ) (i) by the laws of the territory where the services are rendered, the income is chargeable to tax of substantially the same nature as salaries tax under this Ordinance; and (ii) the Commissioner is satisfied that that person has, by deduction or otherwise, paid tax of that nature in that territory in respect of the income. (Added 69 of 1987 s. 2 ) (1AB) If— (a) a person’s income is derived from services rendered by the person as a visiting teacher or researcher in a territory outside Hong Kong ( territory ); (b) the double taxation arrangements made with that territory provide for exemption from tax in that territory on income derived from services rendered as a visiting teacher or researcher in that territory (the provision is referred to as exemption provision ); and (c) the person is or, immediately before visiting that territory as a visiting teacher or researcher, was a Hong Kong resident person, subsection (1A)(b) applies to the income referred to in paragraph (a) only if the person proves to the Commissioner’s satisfaction that, despite the exemption provision, tax is paid or payable in that territory in respect of the income. (Added 6 of 2019 s. 10 ) (1B) In determining whether or not all services are rendered outside Hong Kong for the purposes of subsection (1A) no account shall be taken of services rendered in Hong Kong during visits not exceeding a total of 60 days in the basis period for the year of assessment. (Added 2 of 1971 s. 5 ) (1C) Subsection (1A)(c) does not apply in relation to income derived by a person from services rendered by the person in a territory if— (a) the territory is a DTA territory (as defined by section 48A ); and (b) under section 50 , tax payable in the territory by a Hong Kong resident person in respect of income derived from services rendered by him or her in the territory is to be allowed as a credit against tax payable in Hong Kong by the Hong Kong resident person in respect of that income. (Added 27 of 2018 s. 3 ) (1D) In subsections (1AB) and (1C)— double taxation arrangements ( 雙重課稅安排 ) has the meaning given by section 48A ; Hong Kong resident person ( 香港居民人士 ) has the meaning given by section 48A ; visiting teacher or researcher ( 外訪教師或研究人員 ), in relation to a territory outside Hong Kong, means a person who visits that territory and is present in that territory for the sole or primary purpose of teaching or conducting research at an educational institution or scientific research institution (including a university, college or school) in that territory. (Added 6 of 2019 s. 10 ) (2) In computing the income of any person for the purposes of subsection (1) there shall be excluded the following— (a) (Repealed 130 of 1997 s. 2 ) (b) the official emoluments of consuls, vice-consuls and persons employed on the staff of any consulate, who are subjects or citizens of the state which they represent; (c) subject to subsection (4) any sum received by way of commutation of pension under— (i) a recognized occupational retirement scheme upon termination of service, death, incapacity, terminal illness or retirement; (Amended 1 of 2015 s. 58 ) (ii) the Pensions Ordinance ( Cap. 89 ); (iii) the Pension Benefits Ordinance ( Cap. 99 ); or (iv) the Pension Benefits (Judicial Officers) Ordinance ( Cap. 401 ); (Replaced 76 of 1993 s. 3 ) (ca) in the case of a pension attributable to services rendered in any office or employment, other than employment by the Government, so much of the pension as is not attributable to services rendered in Hong Kong; (Added 2 of 1971 s. 5 ) (cb) so much of accrued benefits received from the approved trustee of a mandatory provident fund scheme, whether in a lump sum or (if applicable) as an instalment, on the ground of a person’s retirement from employment, death, incapacity, terminal illness or permanent departure from Hong Kong as is attributable to mandatory contributions; (Replaced 4 of 1998 s. 6 . Amended 1 of 2015 s. 58 ) (cc) subject to subsections (4) and (5)— (i) any sum (not being a pension) withdrawn from a recognized occupational retirement scheme on retirement, death, incapacity, terminal illness or termination of service; and (Amended 1 of 2015 s. 58 ) (ii) a sum equal to so much of the accrued benefit received from the approved trustee of a mandatory provident fund scheme, whether in a lump sum or (if applicable) as an instalment, on the ground of retirement, death, incapacity, terminal illness, termination of service, or taken to have been received from the approved trustee of such a scheme as provided by subsection (9), as is attributable to voluntary contributions paid to the scheme by an employer; (Added 4 of 1998 s. 6 . Amended 1 of 2015 s. 58 ) (cd) a payment— (i) received by the person on the dismissal or lay-off of the person in the circumstances described in section 31B of the Employment Ordinance ( Cap. 57 ); and (ii) calculated in accordance with section 31G of that Ordinance; (Added 4 of 2022 s. 22 ) (ce) a payment— (i) received by the person on the dismissal, or termination of the contract of employment, of the person in the circumstances described in section 31R of the Employment Ordinance ( Cap. 57 ); and (ii) calculated in accordance with section 31V of that Ordinance; (Added 4 of 2022 s. 22 ) (cf) a payment— (i) received in respect of the person on his or her death in the circumstances described in section 31RA of the Employment Ordinance ( Cap. 57 ); and (ii) calculated in accordance with section 31V of that Ordinance; (Added 4 of 2022 s. 22 ) (d) the emoluments payable by the Central People’s Government to members of the Chinese People’s Liberation Army, and to persons in the permanent service of that Government in Hong Kong in respect of their offices under that Government; (Replaced 2 of 2012 s. 3 ) (e) wound and disability pensions granted to members of the Chinese People’s Liberation Army; (Amended 2 of 2012 s. 3 ) (f) gratuities granted to members of the Chinese People’s Liberation Army in respect of services rendered during war; (Amended 2 of 2012 s. 3 ) (fa) the Hong Kong War Memorial Pensions and additional benefits paid under the Hong Kong War Memorial Pensions Ordinance ( Cap. 386 ); (Added 51 of 1991 s. 24 ) (g) any amount arising from a scholarship, exhibition, bursary, or other similar educational endowment held by that person where he is receiving full time instruction at a university, college, school, or other similar educational establishment; (Replaced 26 of 1969 s. 9 . Amended 1 of 1991 s. 2 ) (h) the emoluments payable by the Central People’s Government to persons in the temporary service of that Government who are in the opinion of the Commissioner serving in Hong Kong on Mainland of China based terms whereby they are normally employed in the Mainland of China but are liable for service elsewhere or are recruited in the Mainland of China specially for service in Hong Kong; (Added 26 of 1969 s. 9 . Amended 23 of 1998 s. 2 ; 12 of 1999 s. 3 ) (i) any amount received by way of periodical payments in the nature of alimony or maintenance by a person from his or her spouse or former spouse; (Added 35 of 1965 s. 5 . Amended 2 of 1971 s. 5 ; 19 of 1991 s. 2 ) (j) income derived from services rendered as master or member of the crew of a ship or as commander or member of the crew of an aircraft by a person who was present in Hong Kong on not more than— (i) a total of 60 days in the basis period for that year of assessment; and (ii) a total of 120 days falling partly within each of the basis periods for 2 consecutive years of assessment, one of which is that year of assessment; (Added 2 of 1971 s. 5 . Amended 7 of 1986 s. 3 ) (k) any salary or other remuneration paid by another person who is chargeable to profits tax under Part 4 which, but for section 17(2) , would be deductible in computing the profits or losses of such other person for the purposes of that Part. (Added 7 of 1986 s. 3 ) (2A) In computing the income of any person for the purposes of subsection (1) there is to be excluded any amount that, had it been payable immediately before the date of commencement * of section 17 of Schedule 1 to the Adaptation of Laws (Military References) Ordinance 2012 ( 2 of 2012 ), would have been excluded under subsection (2)(e) or (f) as in force immediately before that date. (Added 2 of 2012 s. 3 ) (2B) For determining whether any sum, benefit or payment falls within subsection (2)(c)(i) , (cb), (cc)(i) or (ii), (cd), (ce) or (cf), it is immaterial whether or not the sum, benefit or payment was to any extent available to be reduced under— (a) in relation to subsection (2)(c)(i) , (cb) or (cc)(i) or (ii)— section 31IA , 31YAA or 31YB of the Employment Ordinance ( Cap. 57 ); (b) in relation to subsection (2)(cd) — section 31I of that Ordinance; (c) in relation to subsection (2)(ce) — section 31Y of that Ordinance; or (d) in relation to subsection (2)(cf) — section 31YA of that Ordinance. (Added 4 of 2022 s. 22 ) (3) For the purposes of subsection (2)(c) and (cc)— (Amended 4 of 1998 s. 6 ) incapacity ( 無行為能力 ) means permanent unfitness to perform the kind of work that a person was last performing before becoming incapacitated; (Added 1 of 2015 s. 58 ) retirement ( 退休 ) means— (a) a retirement from the service of the employer at some specified age of not less than 45 years; or (b) a retirement after some specified period of service with the employer of not less than 10 years; or (c) the attainment of the age of 60 years or some specified age of retirement, whichever is the later; terminal illness ( 罹患末期疾病 ) means a terminal illness within the meaning of section 158(3) of the Mandatory Provident Fund Schemes (General) Regulation ( Cap. 485 sub. leg. A ); (Added 1 of 2015 s. 58 ) termination of service ( 服務終止 ) means a termination of employment with the employer other than upon retirement, death, incapacity or terminal illness. (Added 76 of 1993 s. 3 . Amended 1 of 2015 s. 58 ) (4) For the purposes of paragraphs (c) and (cc) of subsection (2), an amount that a person— (a) has received from a recognized occupational retirement scheme on the person’s termination of service; or (b) has received, or is taken to have received, from a mandatory provident fund scheme on termination of service, may be excluded under those paragraphs to the extent that it is attributable to voluntary contributions made by the person’s employer and does not exceed the proportionate benefit calculated in accordance with subsection (5). However, where, in the case of a recognized occupational retirement scheme approved by the Commissioner under section 87A before its repeal by the Inland Revenue (Amendment) (No. 5) Ordinance 1993 ( 76 of 1993 ), an amount payable on termination of service in accordance with the rules of the scheme (as approved by the Commissioner before that repeal) exceeds the proportionate benefit so calculated, that amount is to be taken to be the proportionate benefit. (Replaced 4 of 1998 s. 6 ) (5) For the purposes of subsection (4), the formula for calculating the proportionate benefit is— PB = CMS × AB 120 where— PB is the proportionate benefit to be calculated; CMS is the number of completed months of service that the person has completed with the employer; and AB the amount of the person’s accrued benefit. (Added 4 of 1998 s. 6 ) (6) In subsection (5), accrued benefit ( 累算權益 ), in relation to a person, means— (a) if the person is a member of a recognized occupational retirement scheme, the maximum benefit that the person would have been entitled to receive from the scheme for the person’s service recognized for the purposes of the scheme if, at the date on which the person’s employment was terminated, the person had retired (within the meaning of subsection (3)); and (b) if the person is a member of a mandatory provident fund scheme, the person’s accrued benefits attributable to voluntary contributions paid to the scheme in respect of the person for that service. (Added 4 of 1998 s. 6 ) (7) If— (a) the recognized occupational retirement scheme referred to in subsection (2)(cc)(i) is established by an employer who is not chargeable to tax under Part 4 ; or (b) the employer who contributes to the mandatory provident fund scheme referred to in subsection (2)(cc)(ii) is not so chargeable, the sum excluded by subsection (2)(cc) must not, with respect to the part of the sum that is attributable to the employer’s voluntary contributions to the scheme, exceed the amount calculated in accordance with subsection (8). (Added 4 of 1998 s. 6 ) (8) For the purposes of subsection (7), the formula is— A=[(EI× 15 100 )×YCS] – RAB where— A is the amount to be calculated; EI is the employee’s income from the employee’s office or employment for the period of 12 months preceding the date on which the relevant benefit is received or taken to have been received; YCS is the employee’s completed years of service with the employee’s employer; RAB is— (a) in the case of a recognized occupational retirement scheme, zero; or (b) in the case of a mandatory provident fund scheme, so much of the relevant accrued benefit that the employee has received from the scheme as is attributable to mandatory contributions paid to the scheme by the person’s employer. (Added 4 of 1998 s. 6 . Amended E.R. 4 of 2017 ) (9) If— (a) the service of a person in respect of whom an employer has paid voluntary contributions to a mandatory provident fund scheme is terminated; and (b) the accrued benefit attributable to those contributions is retained within the scheme or is transferred to another mandatory provident fund scheme, the person is, for the purposes of subsection (2)(cc) , taken to have received from the scheme on the date of termination of service such part of the person’s accrued benefit as is attributable to those contributions. (Added 4 of 1998 s. 6 ) (10) Subsection (4) does not apply to a part of a person’s accrued benefit in a mandatory provident fund scheme that has previously been taken to have been paid to the person because of the operation of subsection (9). (Added 4 of 1998 s. 6 ) (Replaced 36 of 1955 s. 11 . Amended 15 of 1966 s. 2 ; 7 of 1986 s. 12 ; E.R. 1 of 2012 ) (Format changes— E.R. 2 of 2012 ) Editorial Note: * Commencement date: 1 July 1997. 9. Definition of income from employment * (1) Income from any office or employment includes— (a) any wages, salary, leave pay, fee, commission, bonus, gratuity, perquisite, or allowance, whether derived from the employer or others, except— (i)-(iii) (Repealed 24 of 2003 s. 3 ) (iv) subject to subsection (2A), any amount paid by the employer to or for the credit of a person other than the employee in discharge of a sole and primary liability of the employer to that other person, not being a liability for which any person was surety; (Added 1 of 1991 s. 3 ) (aa) so much of any amount (other than a pension falling under section 8(1)(b) ) received by an employee before or after his employment ceases, whether by way of commutation or otherwise, from a pension or provident fund, scheme or society, other than a recognized occupational retirement scheme or mandatory provident fund scheme, as is attributable to the employer’s contributions to that fund, scheme or society; (Added 2 of 1971 s. 6 . Amended 76 of 1993 s. 4 ; 4 of 1998 s. 6 )