Can I Claim Travel and Transport Expenses as a Business Expense in Hong Kong?
Business travel is deductible; personal travel is not. There is no IRD mileage rate. Actual cost must be claimed and documented with the business purpose.
What Inland Revenue Department (IRD) says
Section 16 allows deduction of travel expenses incurred wholly and exclusively for the purpose of producing assessable profits. The IRD does not publish a standard mileage rate. Actual costs (transport fares, hotel, per diem where justified) are claimable. The IRD specifically disallows personal travel costs. Mixed trips require apportionment.
When you can claim
- Flights and accommodation for overseas business meetings, client visits, or trade fairs
- Taxis and public transport for journeys directly between business meetings
- Accommodation for staff on business travel
- Airport transfer costs for business trips
When you cannot claim
- Personal holidays and leisure travel, even if combined with a business meeting
- Daily commute costs from home to the principal place of business
- First-class travel where the company cannot justify the premium over economy
- Costs for family members accompanying on business trips unless they have a business purpose
Good to know
Pro tip: Maintain a travel log for each trip: destination, dates, business purpose, meetings attended. For mixed business/personal trips, only the incremental cost of the business extension or the pro-rata business days proportion is deductible. IRD audits commonly focus on travel claims as a source of personal expense disguised as business.
Related expenses
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