Application for Certificate of Resident Status relating to the Circular of the State Taxation Administration on Matters Concerning “Beneficial Owners” in Tax Treaties (STA Circular 2018 No. 9)

On 3 February 2018, the State Taxation Administration issued the Circular on Matters Concerning “Beneficial Owners” in Tax Treaties (STA Circular 2018 No. 9) which took effect on 1 April 2018.  STA Circular 2018 No. 9 provides for how the beneficial ownership test is applied to claims for tax treaty benefits on dividends in the Mainland under certain circumstances.

For the purpose of facilitating application for Certificate of Resident Status where the claim for tax benefits in the Mainland falls within the provisions of Article 3 or 4 of STA Circular 2018 No. 9, the Department is in the process of revising Form IR1313A - Application for Certificate of Resident Status (Company, Partnership, Trust or other Body of Persons).  The revised form will be uploaded to the Department’s website once finalised.

In the interim, if you would like to apply for a Certificate of Resident Status for the purpose of claiming tax benefits on dividends under the Comprehensive Double Taxation Arrangement between the Mainland and Hong Kong and the claim falls within the provisions of Article 3 or 4 of STA Circular 2018 No. 9, please observe the following points:

• The relevant persons in the multi-level holding structure who require Certificate of Resident Status (i.e. the applicants) for the purposes of STA Circular 2018 No. 9 should submit their applications in a bundle enclosed with a covering letter.
• The above covering letter should include the following information:
  • The applicable article number of STA Circular 2018 No. 9 (i.e. Article 3(1), Article 3(2) or Article 4) in respect of the applications.
  • The identity of each applicant covered in the bundle application.
  • The identity of the applicant (not being an individual) being designated as the lead applicant who will serve as the primary point of contact on behalf of all the applicants.
  • A chart of the relevant multi-level holding structure, showing:
    • the equity interest of the immediate recipient of dividends is directly or indirectly 100% owned by: (i) the beneficial owner of the dividends; or (ii) government, listed company and/or individual; and
    • the equity interest held by the person(s) at each level of the structure.
  • Confirmation of any change in equity interest of any person in the above chart during the 12 consecutive months before dividends were/are to be received.
  • The following particulars for each person (other than the lead applicant and co-applicants) in the above chart even though the person does not require Certificate of Resident Status:
    • where Article 3(1) of STA Circular 2018 No. 9 is applicable,

      - name and address; and

      - place and date of incorporation / establishment (if applicable);

    • where Article 3(2) or 4 of STA Circular 2018 No. 9 is applicable,

      - name and address;

      - place and date of incorporation / establishment (if applicable);

      - identification number;

      - stock code of the Hong Kong Stock Exchange (if applicable); and

      - jurisdiction of residence.

• The lead applicant and each of the co-applicants should fill in its own application form.