FAQ : Completion of Supplementary Forms

Frequently Asked Questions & Answers on Completion of Supplementary Forms [IR 51S & IR 52S] issued on or after 1 April 2008

For the benefit of the tax paying public and their tax representatives, some frequently asked questions and their answers are listed below for general information and guidance.

Question(s)

	General Issues	1 - 7
	SMALL corporation/business	8 - 13
	Conversion Rate	14
	Industrial Building or Commercial Building Allowance	15
	Internet Business	16 - 24
	Transactions For/With Non-residents	25 - 30
	Tax Data	31 - 40
	Financial Data	41 - 62
	Personal Particulars of Proprietor or Partner and Allocation of Profits/(Loss)	63 - 69
	Mandatory Provident Fund Contributions	70 - 76

Q1	If I choose to download the electronic version of the Supplementary Form from the IRD web site and submit a printed copy of the completed form together with a CD-ROM / DVD-ROM, do I need to cut out the Supplementary Form annexed to the Profits Tax Return before submission?
A1	No. You should submit the Profits Tax Return intact with the blank Supplementary Form.
Q2	If I choose to submit the printed copy of the completed Supplementary Form together with the CD-ROM / DVD-ROM / diskette, how should the CD-ROM / DVD-ROM / diskette be identified?
A2	An external label should be affixed to the CD-ROM / DVD-ROM / diskette showing business name, file number and the year of assessment.
Q3	If the company does not have any data for completing the boxes for amounts, can I leave those boxes blank?
A3	No. You must fill in all these boxes. If nil, just enter "0".
Q4	If the amounts shown in the company's financial accounts include cents, should I put in the cents when stating amounts in the Profits Tax return?
A4	No. You should exclude cents when stating amounts.
Q5	How should a figure be inserted in a box?
A5	You should put in the numbers without inserting " , " in between them and align the figure to the right-hand side.
Q6	If I have prepared accounts for more than 12 months (or less than 12 months), how should the boxes for financial data in the Supplementary Form be completed? Should the amounts be apportioned or grossed up to show figures for a 12-month period?
A6	It is not necessary to apportion (or gross up) the figures if more (or less) than 12-month accounts have been prepared. Amounts extracted from the balance sheet and the profit and loss account should be used in completing the financial data boxes in the Supplementary Form.
Q7	According to the Notes and Instructions on completing Supplementary Forms, I may have to provide personal particulars of persons who have made payments to or received payments from me. Would such disclosure be in breach of provisions in the Personal Data (Privacy) Ordinance?
A7	No, personal data are exempt from the provisions of data protection if they are for the purposes of assessment or collection of tax or duty. See section 58 of the Personal Data (Privacy) Ordinance, Cap. 486.

SMALL corporation/business

IR 51S Boxes S1.1 and S1.1.1; IR 52S Boxes S2.1 and S2.1.1
[Are you a SMALL corporation/business and State your total gross income for the basis period]

Q8	What is a SMALL corporation/business?
A8	A SMALL corporation/business is a company which has total gross income not exceeding HK$500,000 for the year.
Q9	What items should be included in calculating the total gross income for the year?
A9	Total gross income means ALL types of income, whether taxable or non-taxable and whether or not derived from the principal business activity.
Q10	Should proceeds from sale of fixed assets be included in total gross income?
A10	Yes.

IR 51S Boxes S1.1.2 and S1.1.3
[State the name of the Auditor who prepared your Auditor's Report for the basis period and State the date of the Auditor's Report]

Q11	If the company is a SMALL corporation and does not need to submit the financial statements and Auditor's Report with the Return, can I first complete and submit the Return in accordance with the management accounts and engage an auditor to prepare audited financial statements later?
A11	No, you should have prepared the financial statements, Auditor's Report and the tax computation before you complete the Return.
Q12	If the company is a SMALL corporation, can I leave Boxes S1.1.2 and S1.1.3 blank?
A12	No. You must complete both boxes.
Q13	What should I put in Box S1.1.2 for the name of the auditor?
A13	You should insert the name of the auditing firm.

Conversion Rate

IR 51S Box S1.5; IR 52S Box S2.4
[Are your financial statements prepared in a foreign currency?]

Q14	If the company's financial accounts are prepared in a foreign currency, what exchange rate should I use for converting the amounts into HK dollars?
A14	You should use the yearly average rate as at the accounts closing date. You can also find the conversion rate for major foreign currencies in this web site.

Industrial Building or Commercial Building Allowance

IR 51S Box S1.7; IR 52S Box S2.3
[Did you purchase any property(ies) during the basis period on which industrial building or commercial building allowance is claimed?]

Q15	Are all properties bought by the Company qualified for industrial building or commercial building allowances?
A15	No. Certain specified conditions have to be satisfied before an allowance is granted. For details, please refer to the Departmental Interpretation & Practice Notes No. 2 (Revised).

Internet Business

IR 51S Box S1.8; IR 52S Box S2.7
[Within the basis period did you accept any orders, sell any goods, provide any services or accept any payment using the Internet?]

Q16	Does "Internet" used here include "intranet" and "e-mail"?
A16	Yes. However, "fax" is excluded.
Q17	If the acceptance of the orders through Internet is only a minor part of the whole income-earning process, should I tick "yes" or "no"?
A17	Irrespective of whether the acceptance of the orders is a major or minor part of the whole income-earning process, you should still tick "yes".
Q18	Should I treat the company as accepting orders for goods or services using the Internet if an e-mail address is used by customers to place orders?
A18	Yes. This item includes orders received by using a form on a web site and e-mail etc.
Q19	What is meant by "accept payment using the Internet" in Box S1.8 (Box S2.7)?
A19	"Accept payment using the Internet" includes e-banking and credit card payments through the Internet.
Q20	Should I answer "yes" if the company only uses the Internet to deliver the goods or services to customers?
A20	You should tick "yes" where the company fulfils orders by using the Internet. This includes delivery of goods e.g. computer software and music CD using the Internet or provision of Internet access and related services.

IR 51S Box S1.8.1; IR 52S Box S2.7.1
[State the web site you use to accept orders, sell goods, provide services or accept payment]

Q21	If the company only has a web site for advertising purposes and promotion of business, do I need to put it down?
A21	No.
Q22	If the company has several web sites to accept orders, sell goods, provide services and accept payment, should I put down all of them here?
A22	Yes. You should put down all the web sites in the box.

IR 51S Box S1.8.2; IR 52S Box S2.7.2
[State the name of the company hosting the web site, if applicable]

Q23	What is the meaning of the company hosting the web site?
A23	This includes the Internet Service Provider (ISP) which provides the place where the web site resides.

IR 51S Box S1.8.3; IR 52S Box S2.7.3
[State the name of the company providing payment gateway, if applicable]

Q24	What is meant by payment gateway?
A24	This includes the company which provides the means of on-line payments of the Internet transactions.

Transactions For / With Non-residents

IR 51S Boxes S2.1 to S2.5; IR 52S Boxes S3.1 to S3.5
[Pay or accrue sums/fees to non-resident persons]

Q25	What does the term "non-resident person" refer to?
A25	The Inland Revenue Ordinance does not contains any definition of "non-resident person" but the Department has long accepted that the term refers to a person who has no permanent business presence in Hong Kong.
Q26	If a payment is made or accrued to a BVI incorporated company whose directors are resident in Hong Kong and its central management and control is in Hong Kong, should the BVI incorporated company be regarded as a non-resident?
A26	A BVI incorporated company should not be regarded as a non-resident if its directors are resident in Hong Kong and its central management and control is in Hong Kong.
Q27	What does the term "fee(s) in respect of professional services" in Boxes S2.4/S3.4 and S6.3/S7.3 include?
A27	"Fee(s) in respect of professional services" in these two boxes include management, consultancy or service fees, etc. paid or accrued in respect of professional services which may include scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists, accountants, etc.
Q28	How should the question in Box S2.4/S3.4 be answered if the services of the non-resident person were rendered partly in Hong Kong and partly outside Hong Kong?
A28	The question should be answered as "Yes". Only if all services were rendered outside Hong Kong should the question be answered as "No".
Q29	What is meant by "a closely connected person"?
A29	"A closely connected person" is one who is substantially identical to you or ultimately controlled by the same interests as you are.
Q30	I have carried on business with six closely connected non-resident persons. One of them is an individual living in the United States. The other three are corporations incorporated in the British Virgin Islands but carrying on their business in Germany and the remaining two are corporations incorporated in Macao SAR and Australia. What information should be provided in Box S2.5/S3.5?
A30	You should tick "Yes" in Box S2.5/S3.5. For IR 51S, you should also tick Boxes S2.5.1, S2.5.2 and S2.5.5 and state Australia in the space provided in Box S2.5.5. For I.R.52S, you should fill in "British Virgin Islands, Macao SAR and Australia" in the space provided.

Tax Data

IR 51S Box S6.1; IR 52S Box S7.1
[Offshore profits excluded from the Assessable Profits or Adjusted Loss stated in Box 1 in BIR 51/52]

Q31	What amount should I put in the box if an offshore loss is sustained for the year?
A31	You should insert "0" in the box if the net amount of offshore income as reduced by all the related expenses incurred in earning that income is nil or a negative figure.

IR 51 Box S6.2; IR 52S Box S7.2
[Offshore profits from business (already included in box S6.1/S7.1) in respect of which the Internet was used to accept orders, sell goods, provide services or accept payment]

Q32	Should I put a negative figure here if an offshore loss is sustained from business conducted by using the Internet?
A32	Just put "0" in the box.
Q33	What should I put here if offshore profits are generated from business conducted by using the Internet whilst there is an overall offshore loss?
A33	You should still put the amount of offshore profits from using the Internet in Box S6.2/S7.2 even though you have inserted "0" for offshore profits in Box S6.1/S7.1.

IR 51S Box S6.3; IR 52S Box S7.3
[Fees paid or accrued to non-resident persons in respect of professional services rendered in Hong Kong]

Q34	What amount should be put in the box if the non-resident person has rendered services both in and outside of Hong Kong?
A34	The full amount paid or accrued should be included.

IR 51S Box S6.5; IR 52S Box S7.5
[Fees paid or accrued to closely connected non-resident persons]

Q35	What does the term "fees" in this box refer to?
A35	Fees mean the total amount of fees, including commission, management, consultancy or service fee etc.
Q36	If the fees are paid or accrued in the normal course of commercial transactions, do I need to state the amount in the box?
A36	Yes. You should state all the fees paid or accrued to closely connected persons, irrespective of whether or not the amount was determined on an arm's length basis and in the normal course of business.

IR 51S Box S6.6; IR 52S Box S7.6
[Profits from sale of capital asset(s)]

Q37	What should I put if a loss is sustained from sale of capital assets?
A37	You should insert "0" in the box.

IR 51S Box S6.7; IR 52S Box S7.7
[Approved charitable donations claimed]

Q38	What amount should be put in this box?
A38	You should state the amount claimed as deduction. For 2002/03 and prior years, deduction is limited to 10% of assessable profits. The limit is increased to 25% for 2003/04 and subsequent years.

IR 51S Box S6.8 and IR 52 Box S7.8
[Net Interest income exempted from payment of Profits Tax]

Q39	What types of interest income are exempted?
A39	For details, please refer to the Departmental Interpretation & Practice Notes No. 34 (Revised) in this web site.

IR 52S Box S7.12
[Mandatory contributions made for the proprietor or partners under the Mandatory Provident Fund Schemes Ordinance claimed as a deduction]

Q40	What amount should I put in the box?
A40	You should only put in the sum of mandatory contributions made on behalf of the proprietor or partners which can be claimed for deduction under the business's Profits Tax return. Voluntary contributions, any amount exceeding the value which can be claimed for deduction under Profits Tax and contributions made for the proprietor's or partners' spouses and contributions for employees should be excluded.

Financial Data

IR 51S and IR 52S Box S8
[Financial Data]

Q41	Some of the terms or items in Box S8 are accounting terms and have no precise or uniform definition. How can I give the exact figures?
A41	The listed items are intended to refer to items of an identical or similar nature, irrespective of the actual accounting terminology which may have been used in the financial statements. In case more than one entry in the financial statements match the specified item in a particular box, you should fill in the total of these entries.

IR 51S and IR 52S Box S8.1
[Turnover]

Q42	What is the meaning of turnover? Is it the same as "sales"?
A42	According to the Hong Kong Accounting Standard 1 (HKAS 1), "turnover" should consist of revenue arising from the principal activities of the entity and therefore should not usually include those items of revenue and gains that arise incidentally.

IR 51S and IR 52S Box S8.2
[Opening inventories]

Q43	What figure should be entered if the company is a manufacturer and has several kinds of opening stock such as "raw materials", "work-in-progress" and "finished goods" etc.?
A43	i) This refers to the total of all kinds of opening stock disclosed in the detailed Profit and Loss A/C. Thus, a company having more than one kind of opening stock should add them up and insert the total sum in the box.
	ii) The same treatment should be adopted for closing inventories [i.e. Box S8.4].

IR 51S and IR 52S Box S8.3
[Purchases]

Q44	What is the meaning of purchases? What figure should I put in if the company is in the manufacturing business?
A44	i) This refers to the total of all purchases of stock.
	ii) Simply extract the figure for "purchases" from the Profit and Loss A/C, irrespective of whether direct costs, direct expenses or overheads have been included under "purchases" in the accounts.
Q45	If the company is only engaged in the provision of services and is not engaged in trading, what figure should I put in?
A45	In cases where companies are not engaged in the trading of goods or commodities [e.g. companies having rental income, interest income and/or dividend income as their only business receipts] and there are no purchases of trading stock, insert "0" in the box.

IR 51S and IR 52S Boxes S8.5 and S8.6
[Gross profit and Gross loss]

Q46	If the company is not engaged in the trading of commodities, how should I complete this part?
A46	In some cases where companies are not engaged in the trading of goods or commodities [e.g. companies having rental income, interest income and/or dividend income as their only business receipts], the Profit and Loss A/C may not have any figure for "Gross profit/Gross loss". In such cases, insert "0" in the box.

IR 51S and IR 52S Box S8.7
[Interest income]

Q47	What happens if the company has more than one type of interest income? Which figure should I fill in?
A47	If there is more than one entry in the A/Cs for interest income [e.g. bank interest, inter-company interest income, loan interest received etc.], add up all items of an identical or similar nature and insert the total in the box.
Q48	The company has a small amount of interest income which has been included under other entries in the Profit and Loss A/C for the sake of simplicity. Is it necessary to find out the amount for interest income so included and enter it in this box?
A48	In case the interest income has been included under other entries [e.g. as part of the sales proceeds] in the Profit and Loss A/C, you need not separate them from those entries.

IR 51S and IR 52S Box S8.8
[Interest expense]

Q49	X Limited carries on business as a plastics manufacturer. In order to obtain additional working capital, X Limited borrows from a local bank Bank Y. This borrowing is secured by a mortgage over the factory premises owned by X Limited. Besides, X Limited purchased a machine from Company Z (unrelated to X Limited) under hire purchase. During the basis period, X Limited paid interest in the amount of $150,000 and $20,000 to Bank Y and Company Z respectively. If X Limited claims deduction for interest paid or payable to Bank Y and Company Z, what information should be provided?
A49	X Limited should provide the following information:
	Loan 1 Loan 2 Interest paid and payable $150,000 $20,000 Name & address of lender Bank Y, address of Bank Y Company Z, address of Company Z Relationship No No Purpose for the loan Working capital Purchase of machine Security Given Address of factory premises Machine Specific condition under section 16(2) of the IRO relied on section 16(2)(d) section 16(2)(e)
	For further details relating to the specific conditions under section 16(2) of the IRO, please refer to the Departmental Interpretation & Practice Notes No. 13A.
Q50	What figure should be entered if the company has more than one entry in the A/Cs for interest expense?
A50	If there is more than one entry in the A/Cs for interest expense [e.g. bank interest, hire-purchase interest, inter-company interest, mortgage loan interest, Trust Receipt interest etc.], add up all items of an identical or similar nature and insert the total in the box.
Q51	Are bank charges treated as interest expenses? Do I need to insert the figure in this box?
A51	Bank charges are usually in the nature of handling charges for making available loan facilities and are therefore not interest. They are not to be included here.

IR 51S and IR 52S Box S8.9
[Employee and / or Director remuneration / Employee remuneration]

Q52	What should be included here?
A52	i) The "employee" referred to here includes all employees whose remuneration has been charged in the Profit and Loss A/C of the company, irrespective of whether the employees perform their duties in Hong Kong or elsewhere. Remuneration paid by you as employer to overseas employees or staff working in the Mainland should also be included. "Employee" also includes a director of a corporation. However, "employee" does not include a proprietor or partners or their spouses of an unincorporated business.
	ii) It is the sum of all salaries, bonuses, wages, cash allowances etc. paid to employees and includes director's fees.
Q53	If the company provides some fringe benefit to its employees, do I have to include such amount in this box?
A53	Fringe benefits such as quarter expenses, reimbursement of travelling expenses, share options granted, passages, medical expenses etc. need not be added unless these have already been grouped under "employee remuneration" in the Profit and Loss A/C of the company.

IR 51S and IR 52S Box S8.10
[Commission payments]

Q54	What figure should I insert if a small amount of commission payments has been merged with other expense items in the accounts?
A54	If such expenses have been included under other entries in the Profit and Loss A/C [e.g. commission payments to estate agents having been included as part of the purchase cost of landed properties, commission payments to employees having been included under employee remuneration etc.], it can be excluded here.

IR 51S and IR 52S Box S8.12
[Management and / or Consultancy fee payments]

Q55	What does the term "management or consultancy fee payments" mean?
A55	This term refers to payments for management, administrative or professional services, whether to third parties and / or related parties. Professional services may include property or asset valuation, technical and /or feasibility studies, consultancy, etc. Such payments, however, should exclude building management fees, accountancy fees, audit fees and legal fees, which in normal circumstances are seldom included under "management or consultancy fees".
Q56	Should building management fees be included here?
A56	Building management fees paid are NOT to be included.
Q57	If this expense is not substantial and has been lumped together with other items in the Profit and Loss A/C, do I need to include it here?
A57	If minor items falling within this category have been included in other items in the Profit and Loss A/C [e.g. small amount of consultancy fee may have been included under "sundries" or "miscellaneous expenses"], such items can be ignored.

IR 51S Box S8.13; IR 52S Box S8.14
[Bad debts]

Q58	Does this include provision for bad debts?
A58	Bad debts can usually be found in the Profit and Loss A/C if they have been charged in the accounts. It includes provision for bad debts [whether specific or general provision] charged in the A/Cs, irrespective of whether or not the sums concerned have been claimed as a "deduction" for Profits Tax purposes.

IR 51S Boxes S8.14 and S8.15; IR 52S Boxes S8.15 and S8.16
[Net profit per account and Net loss per account]

Q59	Does this refer to the figure before tax or after tax?
A59	This item can be found in the Profit and Loss A/C. It is the net profit or net loss figure BEFORE tax and BEFORE extraordinary or exceptional items.

IR 51S Box S8.16; IR 52S Box S8.17
[Accounts receivable (trade)]

Q60	Does this refer only to trade receivable? Does this include bills receivable?
A60	i) It is intended to refer to trade receivable. This figure can usually be found in the Balance Sheet. ii) In the event that such "trade receivable" was grouped together with other non-trade receivable [e.g. inter-company loans] and shown under headings like "accounts receivable", "debts due from other companies" etc., simply transcribe the Balance Sheet figure into the box. It is however advisable to segregate trade and non-trade receivables in your future Balance Sheets. iii) This term also includes bills receivable.

IR 51S Box S8.17; IR 52S Box S8.18
[Accounts payable (trade)]

Q61	Does this refer only to trade payable? Does this include bills payable?
A61	i) It is intended to refer to trade payable. This figure can usually be found in the Balance Sheet. ii) In the event that such "trade payable" was grouped together with other non-trade payable [e.g. inter-company loans] and shown under headings like "accounts payable", "debts due to other companies" etc., simply transcribe the Balance Sheet figure into the box. It is however advisable to segregate trade and non-trade payables in your future Balance Sheets. iii) This term also includes bills payable.

IR 51S Box S8.18
[Issued share capital]

Q62	Does this refer to the share capital issued during the basis period?
A62	i) No. This refers to all issued share capital of a limited company [whether fully paid or partly paid] as at the Balance Sheet date. ii) In case where a company is a branch of a foreign company, the branch A/C will not usually have any item for share capital. In such cases, insert "0" in the box.

Personal Particulars of Proprietor or Partner and Allocation of Profits/(Loss)

IR 52S Boxes S1.1 and S1.2
[Personal Particulars of Proprietor or Partner and
Allocation of Profits (Loss)]

Q63	If all partners do not elect Personal Assessment and agree the partnership profits to be assessed under Profits Tax, are we still required to complete Boxes S1.1 and S1.2?
A63	Yes. Particulars of the partners, change of partners during the year and allocation of assessable profits/(loss) among partners are still required to be inserted in Boxes S1.1 and S1.2. These details will be useful in calculating the tax liability of an individual partner when loss set-off arises or change occurs in Personal Assessment election by any partner.
Q64	Should I leave columns "Date entered" and "Date left" in Box S1.1 blank if no partner has entered or left the partnership during the relevant basis period?
A64	Yes. These 'Date' fields should be left blank. For any change of partners after the basis period, you should notify Business Registration Office separately by form IRBR64 or by letter.
Q65	If the number of partners is more than four, how should I fill in the details of other partners?
A65	Provide the details on a separate sheet of paper if the space is insufficient.
Q66	How should the allocation of profit or loss among partners be made?
A66	A detailed example can be found on page 4 of the Pro Forma Profits Tax Computation (Form IR 957) which is a step by step guide for making the allocation of profit or loss among partners.
Q67	Should I, as a partner of a partnership business, make an election for Personal Assessment in my own Tax Return - Individuals (Form BIR 60) even if I have stated my intention of election for Personal Assessment in Box S1.2?
A67	Yes. You should make an election for Personal Assessment in your own Tax Return - Individuals (Form BIR 60). If the proprietor or partner who is required to complete a BIR 60 does not make a valid election in the BIR 60, the election in Box S1.2 will be ignored and profits tax demand note may be issued if it is a profit case.
Q68	If the partnership has made an adjusted loss for the year, should I put a negative sign in the last column of Box S1.2?
A68	No. Negative signs or brackets are not required in Box S1.2, but the total should match the adjusted loss reported in Box 1.2 of BIR 52.
Q69	If one partner has a share of profit and the other has a share of loss, should a negative sign be put before the shared loss in the last column of Box S1.2?
A69	As explained on page 4 of the Pro Forma Profits Tax Computation (Form IR 957), each partner should have a share of profit if the business has overall assessable profits. Similarly, each partner should have a share of loss if the business has overall adjusted loss. It is not possible that one partner has a share of profit and the other has a share of loss. Your allocation should be wrong. You are advised to study the example on page 4 of the Form IR957 and re-compute the allocation.

Mandatory Provident Fund Contributions

[Employer's contributions]

Q70	Can a business claim deduction for the employer's contributions to a MPF scheme?
A70	Yes, deductions similar to those for contributions to recognized occupational retirement schemes are available under Profits Tax.
Q71	Is there any limit of deduction for MPF contributions made by a person as an employer?
A71	Regular contributions (whether mandatory or voluntary) made to a MPF scheme by a person as an employer are allowable for deduction, but the deduction is limited to 15% of the total emoluments of the employee for the period to which the payments relate. Contributions other than regular contributions to a MPF scheme are allowable at an even rate over five years commencing in the year of payment.
Q72	What is the Profits Tax implication if an employer chooses to wind up the ORSO scheme and start a new MPF scheme?
A72	Employer contributions to an ORSO scheme that are repaid to the employer upon the winding up of the scheme are taxable to the employer. Any excess recoupment (being investment income of the ORSO scheme) is not taxable in the hands of the employer.

[Proprietor's or partners' contributions as a self employed person]

Q73	Can a business claim deduction for specific provisions made for its proprietor's or partners' mandatory contributions made to MPF Schemes (under Mandatory Provident Fund Schemes Ordinance)?
A73	No. Unlike contributions in respect of employees, claims for deduction for partner's own contributions can only be made for sums which has been paid. Provisions charged to account are not deductible.
Q74	Can a business claim deduction for mandatory contributions made to MPF Schemes exceeding $12,000 per partner per year?
A74	No. Mandatory contributions in excess of $12,000 per partner per year cannot be claimed.
Q75	Can deductions be claimed by the proprietor or partners in respect of mandatory contributions under the Mandatory Provident Fund Schemes Ordinance if the amounts have not been charged in the Profits and Loss Account of the business?
A75	Yes, such amounts can be claimed in the tax computations.
Q76	One of the partners has a separate employment, and mandatory contributions have been made by him both in the capacity of a self-employed person and an employee. How should tax deduction be claimed under profits tax?
A76	In arriving at the deductible amount, sums already deducted in the partner's salaries tax assessment, and profits tax assessments of his other businesses have to be taken into account. In other words, the aggregate amount to be deducted should not exceed $12,000 in a year.

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