Hong Kong Ordinances

INLAND REVENUE ORDINANCE - SECT 16AA

Mandatory contributions in self-employment cases allowable as a deduction

(1) Subject to subsection (2), where a person carrying on a trade, profession
or business in Hong Kong as a sole proprietor or as a partner in a partnership
pays any mandatory contributions in the basis period for any
year of assessment in respect of any liability of himself to pay such
contributions as a self-employed person under the Mandatory Provident Fund 
Schemes Ordinance ( Cap 485), the payment shall be deemed to be an expense
wholly and exclusively incurred in the production of the profits of that
trade, profession or business chargeable to tax under this Part and shall be
allowed as a deduction from such profits for that year of assessment.

(2) A deduction shall not be allowable to a person under subsection

(1) for any year of assessment-

   (a)  in respect of any sum which is allowable as a deduction under any
        other sections of this Part or section 26G;

   (b)  in excess of the amount specified in Schedule 3B in relation to that
        year of assessment, as reduced by the amount of any sum which is
        allowable to that person as a deduction under any other sections of
        this Part or section 26G. (Added 31 of 1998 s. 9)
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        ___ Note: Section 16AA applies in relation to the year of assessment
        commencing on 1 April 2000 and to all subsequent years of assessment.
        (31 of 1998 s. 2(2); L.N. 175 of 2000)