TNAG-1654-FCO40-2302-Hong-Kong-Inland-Revenue-(Amendment)-Ordinance-1987-1987 — Page 28

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Amendment of section 15.

3.

Addition of

new section

15A.

(a) in the case of a corporation, profits tax shall b

charged at the rate of 18 per cent; and

(b) in the case of a corporation to which a share of the assessable profits of a partnership is apportioned under section 22A and is charged in the partnership name under section 22, profits tax shall be charged on such share of the assessable profits at the rate of 18 per cent.".

Section 15(1) of the principal Ordinance is amended—

(a) in paragraph (k) by deleting “and”; and

(b) in paragraph (/) by deleting the full stop and substituting the

following--

"; and"; and

(c) by inserting after paragraph (7) the following-

“(m) sums received or receivable by a person as consideration in respect of the transfer of a right to receive income, as provided for in section 15A.".

4. The principal Ordinance is amended by inserting after section 15 the following--

"Transfer of

right to receive income.

15A. (1) Subject to subsection (3) where—

(a) a right to receive income from property is trans-

ferred by a person to another person; and

(b) consideration has been received or is receivable in

respect of the transfer,

the amount of the consideration shall be deemed to be a receipt arising in or derived from Hong Kong by the trans- feror from a trade, profession or business carried on in Hong Kong.

(2) The reference in subsection (1) to the amount of consideration shall, in the case where consideration is paid or given otherwise than in cash, be construed as a reference to the money value of the consideration.

(3) Subsection (1) shall not apply in relation to a transfer of a right to receive income from property where the right arose from the ownership by the transferor of a legal or equitable estate or interest in the property and, before or at the time of that transfer, the transferor also transferred that estate or interest to the transferee.

(4) In this section-

“income" means any profits, rent, interest or royalty charge-

able to tax under Part IV;

"property" means any property whatsoever;

;

5.

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"right to receive income from property” means a right to have income that will or may be derived from property paid to, or applied or accumulated for the benefit of, the person owning the right.

(5) This section shall apply to any agreement made for the transfer of a right to receive income from property within the meaning of subsection (4) entered into or effected after 25 February 1987 other than an agreement made in pursuance of a legally enforceable obligation incurred on or before that date.".

Section 42B(1) of the principal Ordinance is amended-

(a) in paragraph (a) by deleting "$20,500" and substituting the

following-

(b) in paragraph (aa) by—

"$29,000";

(i) deleting "$8,500" wherever it occurs and substituting the following-

"$5,000";

(ii) deleting "$29,000” wherever it occurs and substituting the following

"$34,000";

"$31,000";

(c) in paragraph (b) by deleting "$20,500" and substituting the

following-

(d) in paragraph (bb) by—–

(i) deleting "$19,000” wherever it occurs and substituting the following

“$10,000";

(ii) deleting "$60,000” wherever it occurs and substituting the following-

(e) in paragraph (c) by——

"$70,000"; and

(i) deleting “$9,000” and substituting the following--

"$11,000";

(ii) deleting "$6,000” and substituting the following—

"$8,000";

(iii) deleting “$27,000” and substituting the following-

“$31,000".

Amendment of section 42B.

6. Section 59(1B)(b) of the principal Ordinance is amended by Amendment of deleting “$28,000” and substituting the following——

section 59.

"$34,000".

7. Section 63H(1) of the principal Ordinance is amended in the Amendment of proviso thereto-

section 63H.

(a) in paragraph (c) by deleting "and" at the end;