In order to further develop the asset management and the related service industries, the Hong Kong Government on 17 July 2015 published in the Gazette, the Inland Revenue (Amendment) (No. 2) Ordinance 2015 (‘Amendment Ordinance’), under which the profits tax exemption for offshore funds shall be extended to private equity funds. Pursuant to the Amendment […]
A tax demand note is a tax assessment issued by the Inland Revenue Department (“IRD”) to any person who is chargeable to tax under the Inland Revenue Ordinance (“IRO”). Upon receipt of a tax demand note from the IRD, one should carefully review the information contained therein. Neglection of a tax demand note may lead […]
Hong Kong adopts the territorial source system whereby only income arising in or derived from Hong Kong (referred as ‘onshore income’) is subject to profits tax pursuant to the general charging rule of Section 14(1) of the Inland Revenue Ordinance. In other words, income which is sourced outside Hong Kong (referred as ‘offshore income’) is […]
Withholding tax generally refers to income tax paid to the government by the payer of the income instead of the recipient of the income. As implied by its name, the tax is withheld or deducted from the payment made to the recipient. Which Payments are Subject to Withholding Tax in Hong Kong? Royalty / licence fee made to a non-Hong Kong resident for […]
