Under what circumstances do you need to act responsibly on behalf of non-residents in Hong Kong

Since non-residents are overseas and have the opportunity to arrange tax avoidance, the Inland Revenue Department will have certain difficulties in levying taxes on non-residents. Therefore, the tax regulations will require his Hong Kong agent or residents who pay him to file tax returns, withhold taxes and pay taxes on his behalf. The definition of an agent (excluding stockbrokers) in the tax regulations refers to:

• Agent, authorized person, agent, receiver or manager

• A resident person who collects profits or income generated in or derived from Hong Kong for the non-resident person

As for the payments made by Hong Kong residents to non-residents, they include:

• Patent fees

• Royalties

• Income received by entertainers or athletes for performing on local commercial or charitable occasions

• Income collected by entertainers or athletes for participating in recording, film, video, television, etc…

But the above paragraph does not include consulting fees, service fees, consulting fees, commissions, rent, etc…

 The Inland Revenue Department will consider the following points to distinguish between “residents/local companies” and “non-residents/non-local companies”

Does he actually operate business in Hong Kong

• His management and monitoring location

• Whether the director has long-term residence in Hong Kong

• Have you opened a bank account in Hong Kong

• The place where daily decisions are executed

The above information is for reference only. If in doubt, we welcome your tax inquiries

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