Mastering expense deductions to optimise tax savings - Workshop 2026

Understanding the rules governing the deduction of expenses under Hong Kong profits tax is essential for accurate tax computation and effective tax planning. This webinar provides a practical overview of the key statutory provisions, including sections 16(1), 17(1)(a), and 17(1)(c), and highlights common pitfalls in the deduction of expenses, particularly in relation to interest deductions.

Join this workshop to gain insight into complex and often misunderstood areas such as the distinction between capital and revenue expenditure, machinery versus building structures, and repair versus improvement. Our speaker will also explore strategies to maximise deductions under relevant provisions, including royalties to non-residents and accelerated expense recognition, equipping you with practical tools to apply in their daily work.

Key topics covered:

• General principles governing deductions under profits tax under sections 16(1), 17(1)(a) and 17(1)(c)
• Traps in deductions of interest expenses under sections 16(2)(c), (d), (e), (f), (2A), (2B) and (2C)
• Distinction between machinery and building structure and their effect in claiming deprecation allowance
• Distinction between improvement, refurbishment, repair and replacement and their effect in the deduction in a profits tax computation
• How to maximise the deduction available under sections 16E, 16F, 16G and 16I
• How to maximise the deduction with the payment of royalty to an associate non-resident
• How to implement a plan for accelerated deduction of expenses at the year end

Trainer:

Patrick Ho, LL.B, LL.M., MBA, MCS, FCPA
Barrister-at-law, Faculty member of Department of Accountancy, Economic and Finance, Hong Kong Baptist University. He is the co-author of the book Hong Kong Taxation and Tax Planning, and has more than 35 years experience in tax practice, university teaching and in-house teaching in all the Big 4.