1964_INLAND_REVENUE_ORDINANCE — Page 114

1989 Ed.]

Inland Revenue

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outside Hong Kong with a view to affording relief from double taxation in relation to income tax and any tax of a similar character imposed by the laws of that territory, and that it is expedient that those arrangements should have effect, the arrangements shall have effect in relation to tax under this Ordinance notwithstanding anything in any enactment. (Amended 7 of 1986 s. 12)

(2) (Repealed 49 of 1956 s. 36)

(3) On the making of an order under this section with respect to arrangements relating to any territory forming part of the Commonwealth (other than the United Kingdom or Hong Kong), section 45 shall cease to have effect as respects that territory except in so far as the arrangements otherwise provide. (Amended 30 of 1950 Schedule; 7 of 1986 s. 12)

(4) Any order made under this section may be revoked by a subsequent order.

(5) Where any arrangements have effect by virtue of this section, the obligation as to secrecy imposed by section 4 shall not prevent the disclosure to any authorized officer of the Government with which the arrangements are made of such information as is required to be disclosed under the arrangements.

(6) The Governor in Council may make rules for carrying out the provisions of any arrangements having effect under this section.

(Amended 49 of 1956 s. 36)

50. Tax credits

(1) The provisions of this section shall have effect where, under arrangements having effect under section 49, tax payable in respect of any income in the territory with the Government of which the arrangements are made is to be allowed as a credit against tax payable in respect of that income in Hong Kong; and in this section the expression "foreign tax" means any tax payable in that territory which under the arrangements is to be so allowed and the expression "tax” means tax chargeable under this Ordinance. (Amended 7 of 1986 s. 12)

(2) The amount of the tax chargeable in respect of the income shall be reduced by the amount of the credit:

Provided that credit shall not be allowed against tax for any year of assessment unless the person entitled to the income is resident in Hong Kong for that year. (Amended 7 of 1986 s. 12)

(3) The credit shall not exceed the amount which would be produced by computing the amount of the income in accordance with the provisions of this Ordinance and then charging it to tax at a rate ascertained by dividing the tax' chargeable (before allowance of credit under any arrangements having effect under section 49) on the total income of the person entitled to the income by the amount of his total income.