Regardless of whether the taxpayer is a Hong Kong resident or a non-resident, if he/she conducts business in Hong Kong and obtains taxable profits from Hong Kong, he shall be taxable. However, even if the taxpayer has not established a business base in Hong Kong, some of the following income will be deemed to have been generated in Hong Kong because of operating business in Hong Kong according to the tax regulations:
1. Payments received for showing films, TV, tapes, recordings, related promotional materials, etc. in Hong Kong.
2. Payments for the use or authorization of patents, designs, trademarks, copyright materials, layout designs of integrated circuits, secret processes, equations, or certain rights in Hong Kong.
3. As explained in the second point above, the money received is used or authorized to use outside Hong Kong, and the money is deductible when determining a person’s assessable profits.
When assessing tax, the Inland Revenue Department will only regard 30% of the above collected amounts as assessable profits.
The above information is for reference only. If in doubt, we welcome your tax inquiries