Raymond Yeung Tax Consultant former Assessor of Inland Revenue Department 前稅局評稅主任楊輝洪

飛鴻稅務顧問  Qualifications   出版書目  

Tel /WhatsApp /WeChat 94735846  *email: yeungfhr@qq.com  

Service charge $500/hr *Hang Seng Bank Account: 385 599279 883 *Payment thru mobile phone: PayMe / FPS轉數快 Yeung Fai Hung *會面:上水廣場5樓太興餐廰  *報稅分析 *稅務咨詢 *記帳系統 *業務報稅 *稅務課程

 

Profits Tax Guide  - Source of profit

Section 14 of IRO: Profits tax is payable on all profits having a Hong Kong source that are generated from a trade, profession or business in Hong Kong. A profit having a Hong Kong source means it is  arising in or derived from Hong Kong.

Section 2(1) of IRO:  All profits from business transacted in Hong Kong, whether directly or through an agent, are deemed to be profits arising in or derived from Hong Kong.

"Source of profit" is a question of facts as well as a question how to draw conclusion from the facts based on the principles as developed in numerous tax cases. Indeed it is a big topic of taxation for big companies which are engaged in activities across the border of Hong Kong. For companies operating in Hong Kong only, the Revenue will generally seek to assess their whole profits and will not allow offshore claim except in rare cases.    

In the case CIR v. Euro Tech (Far East) Ltd, it was held that profit arose in Hong Kong even though the activities in Hong Kong are minimal or they just comprise administrative work.  The crucial point is what and where he did to earn the profit.  

Before dwelling on the law and practice, I would like you to understand that this topic is sometimes controversial and there are no one single hard and fast rule applicable to every case. Different professionals, including judges, lawyers, tax practitioners and even IRD officers may draw different conclusions in the same case. There are of course some general rules developed from case law and I will talk about them later.

My general advice for an ordinary taxpayer is: follow as far as possible the general rules, particularly those set out on my website and my tax books as well those in the Revenue's Departmental Interpretation Note 21. This is because any disputes going to the court are very costly, troublesome and time-consuming. For your easy reading, I have tried my best to make these general rules simple. Please Click here to read my guidance notes. Happy reading.

Also read the following:

CIR v. Hong Kong & Whampoa Dock *  CIR v. International Wood Products

CIR v Karsten Larssen & Co *  Sinolink Overseas Ltd. v CIR

CIR v. Hang Seng Bank Ltd * CIR v. HK-TVB International Ltd 

Bank of India v. CIR  *  CIR v. Magna Industrial Company Ltd   

Exxon Chemical International Supply SA v CIR Kwong Mile Services Limited v CIR

CIR v. Euro Tech (Far East) Ltd *  CIR v Orion Caribbean Ltd

Wardley Investment Services (Hong Kong Limited) v CIR

CIR v Emerson Radio Corporation  

Source of profit - Source of trading profit

Source of profit - Source of manufacturing profit   

Source of profit - Source of interest income

Source of profit - Miscellaneous incomes

Press here to explore

 

楊輝洪 Raymond Yeung 為你提供:

 

* 稅務顧問服務 * 飛鴻作品下載 * 寫好英文信件 * 基礎法律知識 * 實用稅務課程 * 英文速成課程 * 見工英語速成 * 中英文寫作服務 * 電腦會計記帳系統

 

 

email: yeungfhr@qq.com

Tel /WhatsApp 94735846

 

 

My Performance Pledge QEEP

My Curriculum Vitae/resume

Value for Money, for sure!

Why you must own my CDR 

Why my service fee is so low

 

 

 

 

香港稅務課程 Practical Taxation Course

教授實用税務及報稅知識

Private tuition of Hong Kong Taxation of Law and Practice

$900 兩小時,單對單教授,:香港稅務知識加強版香港報稅軟體

報讀者可在一年內免費電話咨詢一次  詳情按此