Tihk Practice Test & Exam Prep | Hong Kong SAR China

Under Section 16(1)(a) and Section 16(2), what is required for interest expense to be deductible by a HK business?

Must be paid to a tax-exempt charity Borrowed for producing assessable profits and satisfy at least one Section 16(2) condition (e.g., lender chargeable to HK Profits Tax) Loan secured by offshore real property Interest rate at least 2% above HIBOR

Correct Answer:

Borrowed for producing assessable profits and satisfy at least one Section 16(2) condition (e.g., lender chargeable to HK Profits Tax)

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