set-off is allowed for any of the four separate taxes already paid. A "temporary resident" is defined as an individual who stays in the Colony for a period or a number of periods amounting to more than one hundred and eighty days during the year of assessment in respect of which the election is made or for a period or periods amounting to more than three hundred days in two consecutive years of assessment one of which is the year of assessment in respect of which the election is made.
Hong Kong has no tax conventions with other countries. However, the Inland Revenue Ordinance provides for limited double taxation relief when income chargeable in Hong Kong has borne tax in another Commonwealth territory. There are no tax holidays or special tax incentives apart from Initial Allowances-see "Depreciation Allowances”.
2. PROFITS TAX.
Profits Tax, which is actually subdivided into Business Profits Tax and Corporation Profits Tax, since the year of assessment 1966/67 is charged at the full standard rate of 15 per cent on every person carrying on business in the Colony. "Person" includes a company, partnership or body of persons.
When the profits of an unincorporated business are less than HK$7,000 for any year of assessment, no tax is charged, and marginal relief is provided so that tax chargeable on such unincorporated business is restricted to one-half the amount by which the profits do exceed HK$7,000.
A single assessment is made on the aggregate profits [less any losses] of all businesses controlled by the same taxpayer.
"Business" includes agricultural undertaking, poultry and pig- rearing and the letting or sub-letting by any corporation to any person of any premises or portion thereof; and the sub-letting by any person of any premises or portion of any premises held by him, under a lease or tenancy other than from the Crown.
Any body of persons carrying on a trade association and deriving more than one-half of its receipts from persons entitled to claim the relevant payments as deductions from their profits is considered to be carrying on a business.
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