Chapter:	112	Title:	Inland Revenue Ordinance	Gazette Number:	E.R. 1 of 2012
Section:	17	Heading:	Deductions not allowed	Version Date:	09/02/2012

(1) For the purpose of ascertaining profits in respect of which a person is chargeable to tax under this Part no deduction shall be allowed in respect of- (Amended 36 of 1955 s. 25; 49 of 1956 s. 13)

(a) domestic or private expenses, including-
(i) the cost of travelling between the person's residence and place of business; and
*(ii) subject to section 16AA, contributions made to a mandatory provident fund scheme in the person's capacity as a member of the scheme; (Replaced 4 of 1998 s. 6. Amended 31 of 1998 s. 25)
*(b) subject to section 16AA, any disbursements or expenses not being money expended for the purpose of producing such profits; (Amended 36 of 1955 s. 25; 31 of 1998 s. 11)
(c) any expenditure of a capital nature or any loss or withdrawal of capital;
(d) the cost of any improvements;
(e) any sum recoverable under an insurance or contract of indemnity;
(f) rent of, or expenses in connection with, any premises or part of premises not occupied or used for the purpose of producing such profits; (Amended 36 of 1955 s. 25)
(g) any tax paid or payable under this Ordinance other than salaries tax paid in respect of employees' remuneration; (Replaced 3 of 1949 s. 7. Amended 35 of 1955 s. 25)
(h) any sums that the person has, as an employer, paid in respect of an employee as-
(i) an ordinary annual contribution to a fund established under a recognized occupational retirement scheme; or
(ii) an ordinary annual premium for a contract of insurance under such a scheme; or
(iii) regular contributions paid to a mandatory provident fund scheme,
to the extent that the total of the payments exceeds 15 per cent of the total emoluments of the employee for the period to which the payments relate; (Replaced 4 of 1998 s. 6)
(i) any provision made for the payment in respect of an employee of any sum referred to in paragraph (h), to the extent that the aggregate of such provision and any such payment as is referred to in that paragraph exceeds 15% of the total emoluments of that employee for the period in respect of which the provision is made; (Added 7 of 1986 s. 5. Amended 76 of 1993 s. 7)
(j) any provision made in respect of an occupational retirement scheme other than for the payment of any sum referred to in paragraph (h); (Added 7 of 1986 s. 5. Amended 76 of 1993 s. 7)
(k) any sum that the person has, as an employer, paid in respect of an employee as-
(i) a contribution to a fund established under a recognized occupational retirement scheme; or
(ii) a premium for a contract of insurance under such a scheme; or
(iii) a contribution to a mandatory provident fund scheme,
where provision for payment of the sum has been made in a prior year of assessment and a deduction has been allowed for the provision in that or another prior year of assessment; or (Replaced 4 of 1998 s. 6)
(l) any-
(i) contribution that the person has, as an employer, made to the funds of; or
(ii) payment that that person has made as an employer for the purposes of the operation of,
an occupational retirement scheme other than a recognized occupational retirement scheme. (Added 76 of 1993 s. 7. Amended 4 of 1998 s. 6)

(a) salaries or other remuneration of the person's spouse; or
(b) interest on capital or loans provided by that spouse; or
(c) a contribution made to a mandatory provident fund scheme in respect of that spouse; or
(d) in the case of a partnership-
(i) salaries or other remuneration of a partner or a partner's spouse; or
(ii) interest on capital or loans provided by a partner or by a partner's spouse; or
*(iii) subject to section 16AA, a contribution made to a mandatory provident fund scheme in respect of a partner or a partner's spouse. (Replaced 4 of 1998 s. 6. Amended 31 of 1998 s. 25)