Filecks

Inland Revenue Ordinance

Profits tax

• S14 Scope of charge, any person carrying on trade, profession or business in Hong Kong and the assessable profits arising in or derived from Hong Kong.
  • Non-resident, for exampe royalty income for withholding tax
  • Consignment sale
  • Artists and Sportmen, commercial events in Hong Kong.
• profit are arising in or derived from Hong Kong, DIPN 21
  • Operations test
  • Contract effected test - trade profit.
  • Provision of credit test s15(1)(f) - interest income.
• Badges of trade, trade and capital assest
  • Totality of facts with evidence:

1. Subject matter of the realization
2. Length of period of ownership
3. Frequency of similar transactions
4. Additional work done on asset sold
5. Circumstances leading to the disposal
6. Motive, chang of intention
7. Accounting classification

• PE - IRR 5, Central management and control
  • Doing business through agents:

1. Common agent
2. Independent agent
3. Dependent agent
4. Branch
5. Subsidiary

Property tax

• Letting or sub-letting by a corporation
• Sub-letting by any other person.

Double tax agreement

• Double Tax Agreement
• Double taxation
• DIPN 32
• DIPN 44
• Tax credit
• Double taxation relief

DIPN

• DIPN 21
• DIPN 39
• DIPN 44

Also see

• Assessable profits
• Burden of proof is required by taxpayers.
• Question of facts

External links

• http://www.ird.gov.hk/eng/ppr/dip.htm