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(ii) the Profits Tax payable by any person or partner- ship other than a corporation in respect of the profits from any trade, profession or business shall not be more than the amount by which the profits from such trade, profession or business exceed the sum of five thousand dollars;
(iii) for the purpose of assessing the profits of a trade, profession or business, a husband and wife who are not living apart fom each other under the decree of a competent court or a duly executed deed of separation shall be deemed to be one person.
liable to
17. The profits of any person shall be exempt from Exemption Hong Kong Profits Tax if the whole income of such person is
of profits liable to Income Tax in the United Kingdom or in any other Empire part of the British Empire.
Income Tax.
allowed in
18. There shall be deducted, for the purpose of ascer- Deductions taining profits under this Chapter, all outgoings and expenses ascertaining incurred in the production thereof including-
(a) a reasonable allowance for the depreciation by wear and tear of assets arising out of their use by the owner thereof in a trade, profession or business carried on by him, such allowance being calculated at the rates prescribed by the Board of War Taxation, provided that the Commissioner may in his discretion allow a higher rate.
(b) where any asset in respect of which depreciation is allowable has been sold or discarded without the said trade, profession or business ceasing, the loss attributable to the excess of the written-down value over the sum, if any, realized or likely to be realized by the sale thereof.
Provided that-
(i) any corresponding profit shall be treated as a receipt of the trade, profession or business, and
(ii) where such asset was only partly used or employed in such trade, profession or business the deduction or addition under this sub-section shall be proportionately reduced;
(c) any sum expended for the repair (but not renewal) of assets in respect of which depreciation is allowable:
Provided that any person may claim as regards his assets, in respect of which depreciation is allowable, that the cost of renewal be deducted in place of the depreciation and loss mentioned in paragraphs (a) and (b) of this sub-section, and his claim shall be allowed on such conditions as the Commissioner may prescribe;
(d) such sum as the Commissioner in his discretion considers reasonable for bad debts incurred in any trade, profession or business, which have become bad during the period of which the profits are being ascertained, and for doubtful debts to the extent that they are estimated to have become bad during the said period, notwithstanding that such bad or doubtful debts were due and payable prior to the commencement of the said period:
Provided that all sums recovered during the said period. on account of amounts previously written off or allowed in respect of bad or doubtful debts shall for the purposes of this Ordinance be treated as receipts of the trade, profession or business for that period;
profits.
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