Non-resident entertainers and sportsmen

Procedures for tax clearance

The Inland Revenue Ordinance (the Ordinance) provides that sums received or profits derived directly or indirectly from performance(s) in Hong Kong by an entertainer or sportsman, who is not a Hong Kong resident, are chargeable to Hong Kong Profits Tax.

The Ordinance further provides that a non-resident entertainer or sportsman is chargeable to tax in the name of the person in Hong Kong (the "Hong Kong payer") who pays or credits the sums to that entertainer or sportsman or his/her agent. The procedures for tax clearance are as follows:

(1)	The Hong Kong payer should complete Form IR623 in duplicate immediately when the non-resident entertainer or sportsman arrives in Hong Kong. You may download a form IR623 here. Please send the completed form by post to G.P.O. Box 132, Hong Kong or by fax at 2877 1232.

(2)	Out of the gross amount payable to the non-resident entertainer or sportsman or his/her agent, the Hong Kong payer should retain the following amount to meet the tax liability:

	(a)	If the performance is procured directly with the non-resident entertainer/sportsman

			Year of assessment	Amount to be retained
			2002/03	10% of gross amount payable
			2003/04	10.33% of gross amount payable
			2004/05	10.67% of gross amount payable

	(b)	If the performance is procured through a non-resident agent who is an individual person or a partnership

			Year of assessment	Amount to be retained
			2002/03	10% of gross amount payable
			2003/04	10.33% of gross amount payable
			2004/05	10.67% of gross amount payable

	(c)	If the performance is procured through a non-resident agent who is a corporate agent or a corporation

			Year of assessment	Amount to be retained
			2002/03	10.67% of gross amount payable
			2003/04 and 2004/05	11.67% of gross amount payable

(3)	Upon receipt of Form IR623, this Department will issue to the Hong Kong payer a notice of assessment for the non-resident entertainer or sportsman or his/her agent.

(4)	The Hong Kong payer is responsible to settle the tax due out of the amount retained (as per paragraph 2 above).

For more information, please call our hotline 2594 2680.

Leaflet : Taxation of non-resident entertainers and sportsmen in Hong Kong

This Department has published a leaflet on taxation of non-resident entertainers and sportsmen in Hong Kong. It explains the relevant legislation and the procedures for tax clearance and illustrates how the tax payable is calculated. Please click here for reading. Printed copies of the leaflet are also available at the Department's offices.