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Profits Tax - Non-residents of Hong Kong
Section 14 of Inland Revenue
Ordinance lays down the basic charge: Every person carrying on a trade,
profession or business in Hong Kong --- who has profits arising in or
derived from Hong Kong --- is chargeable to Profits tax. This applies to
both Hong Kong residents and non-residents.
Profits tax may be levied on the
non-resident directly (assessed in his own name) or indirectly (assessed
on his agent).
The tax can be recoverable from
the non-resident or the agent in Hong Kong. According to Section 2 of Inland
Revenue Ordinance, “agent” includes (a) the agent, attorney, factor,
receiver or manager in Hong Kong, and (b) any person in Hong Kong through
whom the non-resident is in receipt of any profits arising in or derived
from Hong Kong.
The agent should withhold an
adequate amount out of the non-resident's assets within his control
for payment of tax. Failure to do so may render him personally liable to
pay the tax.
The agent can object to the
assessment on behalf of the non-resident.
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