The Departmental Interpretation and Practice Notes provides viewpoints from the IRD's perspective but these are subject to revision if major inconsistencies with court judgments are subsequently found.
[9] Tax on these deemed trading receipts are collected by agents or other persons on withholding basis.
[10][11] Tax liability may be measured by reference to gross income or turnover for deemed trading receipts and in case where profits cannot reliably ascertained.
[16][17][18][19] For the fiscal year 2014/15, the Profits Tax rate is 16.5% for companies and 15% for individual sole proprietors.
Half of the original rates will be charged on concessionary receipts including income derived from qualifying debt instruments and offshore reinsurance business.
Both individuals or corporate owners (including joint tenants) are liable to Properties Tax.
As a result, Hong Kong is considered to be favourable for profit shifting and conducting re-invoicing activities.
For regular taxpayers, normally IRD issues Salaries Tax Return to them on the first working day of May every year.
No Employer's return is required to be furnished for those employees who received HK$120,000 or less during the Year of Assessment.