HongKong(HK) Taxation and Financial Service
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HongKong(HK) Taxation of Non-resident:entertainers and sportsmen in Hong Kong
Hong Kong payer should complete Form IR623 and withhold money to meet tax payment
The Inland Revenue Ordinance (“the IRO”) provides that sums received or profits derived directly or indirectly (including the payment of taxes to the Government) from performance(s) in Hong Kong by an entertainer or sportsman, who is not a Hong Kong resident, are chargeable to Hong Kong Profits Tax. This leaflet explains the relevant legislation, the procedures for tax clearance and the legal obligations of the “Hong Kong payer”.
Who is an “Entertainer or Sportsman”?
“Entertainer or sportsman” is statutorily defined in the Ordinance. It means a person, other than a corporation, who gives performances (whether alone or with other persons) in his character as an entertainer or sportsman in any kind of entertainment or sport,
What income is chargeable to Hong Kong Profits Tax?
Sums received from performances in Hong Kong given by a non-resident entertainer or sportsman on or in connection with a commercial occasion or event are chargeable to Hong Kong Profits Tax.
How to calculate the tax payable?
Profits Tax is charged on the gross amount received (plus the tax borne by the Hong Kong payer, if any) less deductible expenses. For deductible expenses, unless the taxpayer wishes to claim the actual expenses incurred and can produce relevant receipts to substantiate the claim, the Assessor will allow a deduction equal to one-third of the gross amount received (plus the tax borne by the Hong Kong payer, if any).
Tax payable @ 16.5% corporation rate .Note: The tax rate is for illustration purpose only.
Legal obligations of the “Hong Kong payer”
The Ordinance provides that a non-resident entertainer or sportsman is chargeable to tax in the name of the person in Hong Kong who pays or credits the sums to that entertainer or sportsman or his/her agent. The Hong Kong person who made the payment became the “Hong Kong payer”. In the majority of situations, the payer would be the Hong Kong promoter or sponsor of the activity concerned. The Hong Kong payer is responsible for completing the tax return to report the gross amount payable to the recipient; if required; and settling the tax due.
(1)The Hong Kong payer should complete Form IR623 in duplicate immediately when the non-resident entertainer or sportsman arrives in Hong Kong.
(2)The Hong Kong payer should, out of the gross amount payable to the entertainer or sportsman or his/her agent, retain a percentage of the gross sum payable to ensure that there will be sufficient fund for tax payment.
(3)Upon the receipt of Form IR623, this Department will issue to the Hong Kong payer a notice of assessment for the non-resident entertainer or sportsman or his/her agent.
(4)The Hong Kong payer is responsible to settle the tax due out of the amount retained
(5)If the assessment is considered excessive, the right to object against the assessment may be exercised by the Hong Kong payer or the non-resident entertainer/sportsman or his/her agent.
Contact us
For further queries about investment in Shenzhen, please do not hesitate to contact ATAHK at anytime, anywhere by simply calling China hotline at 86-755-82143422, 86-755-82143410, or emailing to 2355725105@qq.com.