Inland Revenue.
[CAP. 112
to Hong Kong tax, the corporation paying the dividend shall state in the certificate issued to the shareholders as prescribed by subsection (2) of section 27 of the Ordinance (Cap.112) the proportionate parts of that dividend liable to and exempt from Hong Kong tax respectively, also the amount of tax deducted.
(2) A resident shareholder claiming to be personally assessed under section 41 shall include in his return of "total income" as defined by subsection (2) of section 42, only that portion of such a dividend which is liable to Hong Kong tax and the tax thereon.
Method of ascertainment and determination of the profits of the Hong Kong branch of a person whose head office is outside the Colony.
Profits of Hong Kong
5. (1) In this rule- "person" includes a company, partnership, or body of persons; "permanent establishment" means a branch, management or other place of business, but does not include an agency unless the agent has, and habitually exercises, a general authority to negotiate and conclude contracts on behalf of his principal or has a stock of merchandise from which he regularly fills orders on his behalf.
(2) The Hong Kong profits of a person having a permanent establishment in the Colony, but whose head office is situated outside the Colony, will be assessed as follows-
(a) where the person keeps accounts for his Hong Kong establishment in such a way that his true profits arising in or derived from the Colony can be readily ascertained from those accounts, his assessment to Profits Tax will be computed by reference to the profits disclosed in those accounts; (b) where the person's accounts do not disclose the true profits arising in or derived from the Colony, his tax liability will be computed by reference to his total profits wherever made. The same proportion of his total profits as his turnover in the Colony bears to his total turnover shall be treated as profits
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offices.
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