Hong Kong Ordinances

INLAND REVENUE ORDINANCE - SECT 88

Exemption of charitable bodies

Notwithstanding anything to the contrary in this Ordinance contained there
shall be exempt and there shall be deemed always to have been exempt from tax
any charitable institution or trust of a public character: Provided that where
a trade or business is carried on by any such institution or trust the profits
derived from such trade or business shall be exempt and shall be deemed to
have been exempt from tax only if such profits are applied solely for
charitable purposes and are not expended substantially outside Hong Kong and
either- (Amended 7 of 1986 s. 12)

   (a)  the trade or business is exercised in the course of the actual
        carrying out of the expressed objects of such institution or trust; or

   (b)  the work in connection with the trade or business is mainly carried on
        by persons for whose benefit such institution or trust is established.
        (Added 3 of 1949 s. 18. Amended 30 of 1950 Schedule; 49 of 1956 s. 66;
        26 of 1969 s. 40; 65 of 1970 s. 10)