1964_INLAND_REVENUE_ORDINANCE — Page 73

72

CAP. 112]

Inland Revenue

[1989 Ed.

23AA. Mutual insurance corporations

For the purposes of this Part, a mutual insurance corporation shall be deemed to carry on an insurance business the surplus from which shall be ascertained in the manner provided in sections 23 and 23A for ascertaining assessable profits and shall be deemed to be assessable profits chargeable to tax under section 14.

(Added 26 of 1969 s. 15)

23B. Ascertainment of the assessable profits of a resident ship-owner

(1) Where a person carries on a business as an owner of ships and either-

(a) the business is normally controlled or managed from within Hong Kong; or

(b) such person is a company incorporated in Hong Kong,

such person shall be deemed to be carrying on that business in Hong Kong and the assessable profits from that business for any year of assessment shall be the sum bearing the same ratio to the aggregate of the sums receivable during the basis period for such year of assessment by such person in respect of the carriage of passengers, mails, livestock and goods shipped in Hong Kong, in respect of outward towage undertaken from Hong Kong and in respect of charter hire other than charter hire attributable to a permanent establishment maintained by such person outside Hong Kong as his total profits for the basis period bear to the aggregate of the total sums receivable by him during that period in respect of the carriage of passengers, mails, livestock and goods, in respect of towage and in respect of charter hire: (Amended 35 of 1965 s. 12)

Provided that in calculating the sums receivable in respect of the carriage of passengers, mails, livestock and goods shipped in Hong Kong nothing shall be included in respect of the shipment of goods brought to Hong Kong solely for transhipment unless the outward freight is payable in Hong Kong. (Amended 7 of 1986 s. 12)

(2) In this section-

"business as an owner of ships" does not include dealing in ships or agency business in connection with shipping; (Added 2 of 1971 s. 15)

"charter hire" means sums receivable by a ship-owner under a charter party which is either a bare boat, voyage or time charter and under which there is a demise of the ship; (Amended 2 of 1971 s. 15)

"owner" includes a charterer;

"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;