1964_INLAND_REVENUE_ORDINANCE — Page 37

36

CAP. 112]

Inland Revenue

[1989 Ed.

shall be charged on such share of the assessable profits at the rate of 18%; (Added 28 of 1987 s. 2. Amended 28 of 1988 s. 3) Provided further that for the year of assessment commencing on 1 April 1988-

(a) in the case of a corporation, profits tax shall be charged at the rate of 17%; 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 17%; (Added 28 of 1988 s. 3. Amended 17 of 1989 s. 3) Provided further that for the year of assessment commencing on 1 April 1989 and all subsequent years of assessment-

(a) in the case of a corporation, profits tax shall be charged at the rate of 16.5%; 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 16.5%. (Added 17 of 1989 s. 3)

15. Certain amounts deemed trading receipts

(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 Hong Kong from a trade, profession or business carried on in Hong Kong-

(a) sums, not otherwise chargeable to tax under this Part, received by or accrued to a person from the exhibition or use in Hong Kong 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 of or right to use in Hong Kong a patent, design, trademark, copyright material or secret process or formula or other property of a similar nature, or for imparting or undertaking to impart knowledge directly or indirectly connected with the use in Hong Kong of any such patent, design, trademark, 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 connection with the carrying on of a trade, profession or business in Hong Kong, other than sums in connection with capital expenditure made or to be made by the person;