1971-HKRS29-8-38_Part01 — Page 11

6

Amendment of section 10.

7.

Repeal of Sections 13A

and 13B.

Repeal and replacement

of sections 14 and 15,

in respect of any gain which may be realized by the exercise of a right, salaries tax shall not be chargeable under any other provision of this Ordin- ance in respect of the receipt of the right".

Section 10 of the principal Ordinance is amended- (a) by deleting the colon and substituting a full stop; and (b) by deleting the proviso.

$. Sections 13A and 13B of the principal Ordinance are repealed.

9.

Sections 14 and 15 of the principal Ordinance are repealed and replaced by the following-

"Charge of profis lax.

Certain

amounts deemed Trading

receipts.

14. Subject to the provisions of this Ordinance, profits tax shall be charged for each year of assess- meni at the standard rate on every person carrying on a trade, profession or business in the Colony in respect of his assessable profits arising in or derived from the Colony for that year from such trade, pro- fession or business (excluding profits arising from the sale of capital assets) as ascertained in accordance with this Part.

15. (1) For the purposes of this Ordinance, the sums described in the following paragraphs shall be deemed to be receipts arising in or derived from the Colony from a trade, profession or business carried on in the Colony--

(a) sums, not otherwise chargeable to tax under this Part, received by or accrued to a person from the exhibition or use in the Colony of cinematograph or television film or tape, any sound recording, or any advertising material connected with such film. tape or recording: (b) sums, not otherwise chargeable to tax under this Part, received by or accrued to a person for the use or right to use in the Colony a patent, design, trademark, copyright material or secret process or formula or other prop- erty of a similar nature, or for imparting or undertaking to impart knowledge directly or indirectly connected with the use in the Colony of any such patent, design, trade- mark, copyright, secret process or formula or other property:

(c) sums received by or accrued to a person by way of grant, subsidy or similar financial assistance in connexion with the carrying on of a trade, profession or business in the Colony, other than sums in connexion with capital expenditure made or to be made by the person:

(d) sums received by or accrued to a person by way of hire, rental or similar charges for the use of movable property in the Colony or the right to use movable property in the Colony:

(e) the amount of a balancing charge directed to be made on a person under Part VI;

(f) sums received by or accrued to a corporation carrying on a trade, profession or business in the Colony by way of interest derived from the Colony:

(g) sums received by or accrued to a person, other than a corporation, carrying on a trade, profession or business in the Colony by way of interest derived from the Colony which interest is in respect of the funds of the trade, profession or business and is exempt from interest tax under Part V:

(h) sums received by or accrued to a person by way of refund to that person of a contribution made by him as employer to an approved retirement scheme, but to the extent only that such sums were allowed as deductions in ascertaining the assessable profits of that person under this Part.

(2) Wberc, io ascertaining for the purposes of this Part the profits of a trade, profession or business carried on in the Colony, a deduction has been allowed for any debt incurred for the purposes of the trade, profession or business, then, if the whole or any part of that debt is thereafter released, the amount released shall be deemed to be a receipt of the trade, profession or business arising in or derived from the Colony at the time when the release was effected.".