The business model of two or more taxpayers is a partnership business, but the number of partners in the partnership business cannot exceed 20. The Inland Revenue Department will calculate the tax on the assessable profits of the partnership business and collect the tax in the name of the partnership. The profit of the partnership business must be apportioned according to the proportion of each partner, and the salary of each partner, the interest derived from the loan to the partnership business or the capital invested must also be included in the profit apportioned. If one of the partners results in a loss, the loss must be shared again according to the proportion of the remaining profitable partners. If the chief partner of the partnership business (that is, the partner listed first in the agreement or on the business registration form) is not responsible for tax filing and payment, the other partners must also file and pay taxes on his behalf. In terms of taxation, the Inland Revenue Department will issue a partnership notice to show the chief partner, unless that person can prove that another person residing in Hong Kong is the chief partner, otherwise, he cannot evade tax liability.
The above information is for reference only. If in doubt, we welcome your tax inquiries