Scope of Tax
Persons carrying on any trade, profession or business in Hong Kong are chargeable to profits tax on all profits (excluding profits arising from the sale of capital assets) arising in or derived from Hong Kong from such trade, profession or business. There is no distinction between residents and non-residents. A resident may derive profits from abroad without having to pay tax in Hong Kong; conversely, a non-resident may have tax liability in Hong Kong on profits arising therefrom. The questions of whether a profession or business is carried on in Hong Kong and whether profits are derived from Hong Kong are largely one of fact, however some guidance on the applicable principles can be found in judgments of the Hong Kong Courts.