Profits Tax - Technical education
16C of Inland Revenue Ordinance allows “any payment to be used for
the purpose of technical education related to that trade or
business at any university, university college, technical college
or other similar institutions” which are approved by Commissioner
of Inland Revenue.
of “approved institutes” is published on the
under [tax information] > [businesses].
16C is to broaden the scope of deduction. In other words, the
expenditure not meeting the Section 16C conditions can still be
deductible if it satisfies Section 16(1).
Technical education is deemed to be related to a trade or business
if it is of a kind specially requisite for persons employed in
that trade or business.
qualifying expenditure refers to the payments for education in
approved institute. There is no such requirement for the
taxpayer's employee to study in the institute. It does not
matter whether the payment is paid to the institute or students.