Hong Kong Ordinances

INLAND REVENUE ORDINANCE - SECT 2

Interpretation

(Past version on 17/04/2003).
(Past version on 01/12/2000).
(Past version on 01/01/2000).
(Past version on 17/04/1998).
(Past version on 01/07/1997).
(Past version on 30/06/1997).

(1) In this Ordinance, unless the context otherwise requires-

"active partner" (積極參與的合夥人), in relation to a partnership,
means a partner who takes an active part in the control, management, or
conduct of the trade or business of such partnership;

"agent" (代理人), in relation to a non-resident person or to a partnership
in which any partner is a non-resident person, includes-

   (a)  the agent, attorney, factor, receiver, or manager in Hong Kong of such
        person or partnership, and

   (b)  any person in Hong Kong through whom such person or partnership is in
        receipt of any profits or income arising in or derived from Hong Kong;

"approved charitable donation" (認可慈善捐款) means a donation of money
to any charitable institution or trust of a public character which is exempt
from tax under section 88 or to the Government, for charitable purposes;
(Replaced 13 of 1971 s. 2. Amended 76 of 1975 s. 2; 74 of 1981 s. 4; 30 of
1990 s. 2; 78 of 1999 s. 7)

"arrangement" (安排) includes-

   (a)  any agreement, arrangement, understanding, promise or undertaking,
        whether express or implied, and whether or not enforceable or intended
        to be enforceable, by legal proceedings; and

   (b)  any scheme, plan, proposal, action or course of action or course of
        conduct; (Added 32 of 1998 s. 3)

"assessable income" (應評稅入息) means the assessable income of a person
in any year of assessment as ascertained in accordance with sections 11B, 11C
and
11D; and "net assessable income" (應評稅入息實額) means
assessable income as adjusted in accordance with section 12; (Replaced 71 of
1983 s. 2)

"assessable profits" (應評稅利潤) means the profits in respect of which a
person is chargeable to tax for the basis period for any year of  assessment,
calculated in accordance with the provisions of Part IV; (Replaced 28 of 1964
s. 2)

"assessor" (評稅主任) means an assessor appointed under this Ordinance;

"assistant commissioner" (助理局長) means an assistant commissioner of
Inland Revenue appointed under this Ordinance;

"authorized representative" (獲授權代表) means a person authorized in
writing by any other person to act on his behalf for the purposes of this
Ordinance; (Replaced 7 of 1975 s. 2)

"basis period" (評稅基期) for any year of assessment is the period on the
income or the profits of which tax for that year ultimately falls to be
computed; (Amended 36 of 1955 s. 3)

"bill of sale" (賣據) means a bill of sale registrable under the Bills of 
Sale Ordinance ( Cap 20);

"body of persons" (團體) means any body politic, corporate or collegiate and
any company, fraternity, fellowship and society of persons whether corporate
or not corporate; (Added 36 of 1955 s. 3)

"business" (業務) includes agricultural undertaking, poultry and pig rearing
and the letting or sub-letting by any corporation to any person of any
premises or portion thereof, and the sub-letting by any other person of any
premises or portion of any premises held by him under a lease or tenancy other
than from the Government; (Replaced 35 of 1965 s. 2. Amended 19 of 1996 s. 15)

"certificate of deposit" (存款證) means a document relating to money, in
any currency, which has been deposited with the issuer or some other person,
being a document which recognizes an obligation to pay a stated amount to
bearer or to order, with or without interest, and being a document by the
delivery of which, with or without endorsement, the right to receive that
stated amount, with or without interest, is transferable, and, in the case of
any such document which is a prescribed instrument by virtue of
paragraph (a) of the definition of "prescribed instrument" (訂明的票據)
in section 137B of the Banking Ordinance ( Cap 155), includes any right or
interest referred to in paragraph (b) of that definition in respect of such
document; (Added 30 of 1981 s. 2. Amended 94 of 1993 s. 36)

"Commissioner" (局長) means the Commissioner of Inland Revenue appointed
under this Ordinance; (Replaced 26 of 1969 s. 3)

"conditional sale agreement" (有條件售賣協議) means an agreement for
the sale of goods under which the purchase price or part of the purchase price
is payable by instalments, and the property in the goods remains in the seller
(notwithstanding that the buyer is to be in possession of the goods) until
such conditions as to the payment of instalments or otherwise as may be
specified in the agreement are fulfilled; (Added 32 of 1998 s. 3)

"corporation" (法團) means any company which is either incorporated or
registered under any enactment or charter in force in Hong Kong or elsewhere
but does not include a co-operative society or a trade union; (Amended 2 of
1971 s. 2)

"debenture" (債權證) means a debenture as defined in section 2(1) of the
Companies Ordinance ( Cap 32);

"deposit" (存款) means a deposit as defined in section 2(1) of the Banking 
Ordinance ( Cap 155); (Added 29 of 1982 s. 2. Amended 27 of 1986 s. 137)

"deputy commissioner" (副局長) means a deputy commissioner of Inland
Revenue appointed under this Ordinance; (Amended 48 of 1995 s. 2)

"digital signature" (數碼簽署) has the same meaning as in section 2(1) of
the Electronic Transactions Ordinance ( Cap 553); (Added 5 of 2003 s. 2)

"electronic record" (電子紀錄) has the same meaning as in section 2(1) of
the Electronic Transactions Ordinance ( Cap 553); (Added 5 of 2003 s. 2)

"executor" (遺囑執行人) means any executor, administrator, or other
person administering the estate of a deceased person, and includes a trustee
acting under a trust created by the last will of the author of the trust;

"financial institution" (財務機構), means-

   (a)  an authorized institution within the meaning of section 2 of the
        Banking Ordinance ( Cap 155);

   (b)  any associated corporation of such an authorized institution which,
        being exempt by virtue of section 3(2)(a) or (b) or (c) of the
        Banking Ordinance ( Cap 155), would have been liable to be authorized
        as a deposit-taking company or restricted licence bank under that
        Ordinance had it not been so exempt; (Replaced 27 of 1986 s. 137.
        Amended 3 of 1990 s. 55; 49 of 1995 s. 53)

"grandparent or grandparent of his or her spouse"
(該人的或其配偶的祖父母或外祖父母), in relation to any person,
means-

   (a)  a natural grandfather or grandmother of the person or his or her
        spouse;

   (b)  an adoptive grandparent of the person or his or her spouse

(whether an adoptive parent of a natural parent, adoptive parent or step
parent of the person or his or her spouse, or a natural parent of an adoptive
parent of the person or his or her spouse);

   (c)  a step grandparent of the person or his or her spouse (whether a step
        parent of a natural parent, adoptive parent or step parent of the
        person or his or her spouse, or a natural parent of a step parent of
        the person or his or her spouse); or

   (d)  in the case of a deceased spouse, a person who would have been the
        grandparent of the person's spouse by reason of any of the provisions
        of paragraphs (a) to (c) if the spouse had not died; (Added 31 of 1998
        s. 3)

"hire-purchase agreement" (租購協議) means an agreement for the bailment
of goods under which the bailee may buy the goods, or under which the property
in the goods will or may pass to the bailee; (Added 32 of 1998 s. 3)

"Hong Kong currency" (港幣) means money which is legal tender in Hong Kong;
(Added 29 of 1982 s. 2)

"husband" (丈夫) means a married man whose marriage is a marriage within the
meaning of this section; (Added 43 of 1989 s. 2)

"incapacitated person" (無行為能力的人) means any minor, lunatic,
idiot, or person of unsound mind;

"inspector" (稅務督察) means an inspector appointed under this Ordinance;
(Added 36 of 1955 s. 3)

"lease" (租約), in relation to any machinery or plant, includes-

   (a)  any arrangement under which a right to use the machinery or plant is
        granted by the owner of the machinery or plant to another person; and

   (b)  any arrangement under which a right to use the machinery or plant,
        being a right derived directly or indirectly from a right referred to
        in paragraph (a), is granted by a person to another person, but does
        not include a hire-purchase agreement or a conditional sale  agreement
        unless, in the opinion of the Commissioner, the right under the
        agreement to purchase or obtain the property in the goods would
        reasonably be expected not to be exercised; (Added 32 of 1998 s. 3)

"limited partnership" (有限責任合夥) has the same meaning as in
section 3 of the Limited Partnerships Ordinance ( Cap 37); (Added 47 of 1992
s. 2)

"mandatory contributions" (強制性供款), in relation to a
mandatory provident  fund scheme, means mandatory contributions paid to the
scheme in accordance with the Mandatory Provident Fund Schemes Ordinance (
Cap 485); (Added 4 of 1998 s. 6)

"mandatory provident fund scheme" (強制性公積金計劃) means a provident
fund scheme registered under the Mandatory Provident Fund Schemes Ordinance (
Cap  485); (Added 4 of 1998 s. 6)

"marriage" (婚姻) means-

   (a)  any marriage recognized by the law of Hong Kong; or

   (b)  any marriage, whether or not so recognized, entered into outside Hong
        Kong according to the law of the place where it was entered into and
        between persons having the capacity to do so, but shall not, in the
        case of a marriage which is both potentially and actually polygamous,
        include marriage between a man and any wife other
than the principal wife, and "married" (結婚) shall be construed
accordingly; (Added 43 of 1989 s. 2)

"mortgage" (按揭) means a security by way of mortgage or equitable mortgage
for the payment of any definite and certain sum of money advanced or lent at
the time, or previously due and owing, or forborne to be paid, being payable,
or for the repayment of money thereafter to be lent, advanced or paid, or
which may become due upon an account current, together with any sum already
advanced or due, or without, as the case may be, and includes-

   (a)  conditional surrender by way of mortgage, or further charge, of or
        affecting any property whatsoever; and

   (b)  any conveyance of any property whatsoever in trust to be sold or
        otherwise converted into money, intended only as a security, and
        redeemable before the sale or other disposal thereof, either by
        express stipulation or otherwise; and

   (c)  any instrument for defeating or making redeemable, or explaining or
        qualifying any conveyance, transfer or disposition of any property
        whatsoever, apparently absolute, but intended only as a security; and

   (d)  any instrument relating to the deposit of any title deeds or
        instruments constituting or being evidence of the title to any
        property whatsoever or creating a charge on any property whatsoever;
        and

   (e)  any mortgage by an equitable owner of his equitable rights; and

   (f)  any warrant of attorney to enter up judgment; (Replaced 79 of 1979 s.
        2) [cf. 1891 c. 39 s. 86 U.K.]

"net chargeable income" (應課稅入息實額) means net chargeable income
calculated in accordance with section 12B; (Added 71 of 1983 s. 2)

"occupational retirement scheme" (職業退休計劃) has the meaning assigned
to it by section 2(1) of the Occupational Retirement Schemes Ordinance ( Cap 
426); (Added 76 of 1993 s. 2)

"owner" (擁有人) in respect of land or buildings or land and buildings,
includes a person holding directly from the Government, a beneficial owner, a
tenant for life, a mortgagor, a mortgagee in possession, a person with adverse
title to land receiving rent from buildings or other structures erected on
that land, a person who is making payments to a co-operative society
registered under the Co-operative Societies Ordinance ( Cap 33) for the
purpose of the purchase thereof, and a person who holds land or buildings or
land and buildings subject to a ground rent or other annual charge; and
includes an executor of the estate of an owner; (Added 26 of 1969 s. 3.
Amended 8 of 1983 s. 2; 52 of 1993 s. 2)

"parent or parent of his or her spouse" (該人的或其配偶的父或母),
in relation to any person, means-

   (a)  a parent of whose marriage the person or his or her spouse is the
        child;

   (b)  the natural father or mother of the person or his or her spouse;

   (c)  a parent by whom the person or his or her spouse was adopted;

   (d)  a step parent of the person or his or her spouse; or

   (e)  in the case of a deceased spouse, a person who would have been the
        parent of the person's spouse by reason of any of the provisions of
        paragraphs (a) to (d) if the spouse had not died; (Added 31 of 1998 s.
        3)

"password" (通行密碼) means any combination of letters, characters,
numbers or other symbols selected by a person and approved by the Commissioner
for use in systems designated by the Commissioner for the purpose of
authenticating the person's identification in communicating with the
Commissioner in relation to a return required to be furnished under this
Ordinance; (Added 5 of 2003 s. 2)

"person" (人、人士) includes a corporation, partnership, trustee, whether
incorporated or unincorporated, or body of persons; (Amended 2 of 1971 s. 2;
30 of 1981 s. 2)

"precedent partner" (首合夥人) means the partner who, of the
active partners resident in Hong Kong-

   (a)  is first named in the agreement of partnership; or

   (b)  if there is no agreement, is specified by name or initials singly or
        with precedence to the other partners in the usual name of the
        partnership; or

   (c)  is first named in any statutory statement of the names of the
        partners;

"profits arising in or derived from Hong Kong"
(於香港產生或得自香港的利潤) for the purposes of Part IV shall,
without in any way limiting the meaning of the term, include all profits from
business transacted in Hong Kong, whether directly or through an agent;

"receiver" (接管人) includes any receiver or liquidator, and any assignee,
trustee, or other person having the possession or control of the property of
any person by reason of insolvency or bankruptcy;

"recognized certificate" (認可證書) has the same meaning as in
section 2(1) of the Electronic Transactions Ordinance ( Cap 553); (Added 5 of
2003 s. 2)

"recognized occupational retirement scheme" (認可職業退休計劃) means
an occupational retirement scheme-

   (a)  which, prior to the commencement* of section 2 of the Inland Revenue
        (Amendment) (No. 5) Ordinance 1993 (76 of 1993), was a retirement
        scheme approved by the Commissioner under section 87A where such
        approval has not subsequently been withdrawn;

   (b)  registered for the time being under section 18 of the
        Occupational Retirement Schemes Ordinance ( Cap 426);

   (c)  in respect of which an exemption certificate has been issued under
        section 7(1) of the Occupational Retirement Schemes Ordinance ( Cap 
        426) and has not been withdrawn;

   (d)  which is operated by an employer who is-

        (i)    the government of a country or territory outside Hong Kong; or

        (ii)   any agency or undertaking of or by such a government which is
               not operated for the purpose of gain; or (Amended 19 of 1996 s.
               3)

   (e)  contained in or otherwise established by an Ordinance other than the
        Mandatory Provident Fund Schemes Ordinance ( Cap 485); (Added 76 of
        1993 s. 2. Amended 4 of 1998 s. 6)

"recognized retirement scheme" (認可退休計劃) means-

   (a)  a recognized occupational retirement scheme; or

   (b)  a mandatory provident fund scheme; (Added 31 of 1998 s. 3)

"return" (報稅表) includes any return furnished under section 51AA,
irrespective of the manner in which that return is furnished; (Added 5 of 2003
s. 2)

"river trade limits" (內河航限) has the same meaning as in the Merchant 
Shipping Ordinance ( Cap 281); (Added 47 of 1992 s. 2)

"specified form" (指明的格式) means a form specified under section 86;
(Added 43 of 1989 s. 2. Amended 5 of 2003 s. 2)

"spouse" (配偶) means a husband or wife; (Added 43 of 1989 s. 2)

"standard rate" (標準稅率) means the rate specified in Schedule 1; (Added
30 of 1950 Schedule) "tax" (稅、稅款、稅項) except for the purposes of
Parts XII and XIII, means any tax imposed by this Ordinance (including
provisional salaries tax charged under Part XA, provisional profits tax
charged under Part XB and provisional property tax charged under Part XC)
other than additional tax, but for the purposes of Parts XII and XIII "tax"
(稅、稅款、稅項) includes additional tax; (Replaced 26 of 1969 s. 3.
Amended 8 of 1973 s. 2; 7 of 1975 s. 2; 8 of 1983 s. 2)

"telefiling system" (電話報稅系統) means a system that enables a person
to furnish to the Commissioner certain returns or information by using a
telephone; (Added 5 of 2003 s. 2)

"trade" (行業、生意) includes every trade and manufacture, and every
adventure and concern in the nature of trade;

"trustee" (受託人) includes any trustee, guardian, curator, manager, or
other person having the direction, control, or management of any property on
behalf of any person, but does not include an executor;

"voluntary contributions" (自願性供款), in relation to a
mandatory provident  fund scheme, means voluntary contributions paid to the
scheme in accordance with section 11 of the Mandatory Provident Fund Schemes 
Ordinance ( Cap 485); (Added 4 of 1998 s. 6)

"wife" (妻子) means a married woman whose marriage is a marriage within the
meaning of this section; (Replaced 43 of 1989 s. 2)

"year of assessment" (課稅年度) means the period of 12 months commencing
on 1 April in any year; (Replaced 30 of 1950 Schedule)

"year preceding a year of assessment" (任何課稅年度的上一年) means
the period of 12 months ending on 31 March immediately prior to such
year of assessment. (Amended 36 of 1955 s. 3; 9 of 1958 s. 2; 26 of 1969 s. 3;
7 of 1986 s. 12; 76 of 1993 s. 2; 12 of 1999 s. 3)

(2) For the purposes of the definition of "financial institution"
(財務機構) in subsection (1)-

"associated corporation" (相聯法團), in relation to an authorized
institution, means-

   (a)  a corporation over which the institution has control;

   (b)  a corporation which has control over the institution; or

   (c)  a corporation which is under the control of the same person as is the
        institution; (Replaced 49 of 1995 s. 53)

"control" (控制), in relation to a corporation, means the power of a person
to secure-

   (a)  by means of the holding of shares or the possession of voting power in
        or in relation to that or any other corporation; or

   (b)  by virtue of any powers conferred by the articles of association or
        other document regulating that or any other corporation, that the
        affairs of the first-mentioned corporation are conducted in accordance
        with the wishes of that person. (Added 73 of 1978 s. 2)

(2A) For the purposes of the definition of "recognized occupational retirement
scheme" (認可職業退休計劃) in subsection (1)-

   (a)  a scheme which is registered for the time being under section  18 of
        the Occupational Retirement Schemes Ordinance ( Cap 426) shall upon
        registration be regarded as a
        recognized occupational retirement scheme as from-

        (i)    the date on which the application for such registration was
               made; or

        (ii)   the date on which the terms of the scheme came into effect,
               whichever is the earlier; and

   (b)  a scheme in respect of which an exemption certificate has been issued
        under section 7(1) of the Occupational Retirement Schemes Ordinance (
        Cap 426) and has not been withdrawn shall upon the issue of the
        certificate be regarded as a recognized occupational retirement scheme
        as from-

        (i)    the date on which the application for the certificate was made;
               or

        (ii)   the date on which the terms of the scheme came into effect,
               whichever is the earlier: Provided that if such date is earlier
               than the first commencement date of the
               Occupational Retirement Schemes Ordinance ( Cap 426), the
               scheme shall be regarded as a
               recognized occupational retirement scheme as from such
               commencement date. (Added 76 of 1993 s. 2)

(3) For the purposes of this Ordinance a husband and wife shall be deemed to
be living apart when they are living apart-

   (a)  under a decree or order of a competent court in or outside Hong Kong;

   (b)  under a duly executed deed of separation or any instrument of similar
        effect; or

   (c)  in such circumstances that the Commissioner is of the opinion the
        separation is likely to be permanent. (Added 43 of 1989 s. 2)

(4) Whether or not a person who is or was formerly a member of a
mandatory provident fund scheme has permanently departed from Hong Kong is,
for the purposes of this Ordinance, to be determined by reference to
regulations in force under the Mandatory Provident Fund Schemes Ordinance (
Cap 485). (Added 4 of 1998 s. 6)

(5) In this Ordinance, a reference to the act of signing a return required to
be furnished under this Ordinance includes a reference to-

   (a)  the affixing of a digital signature to; or (Amended 14 of 2004 s. 29)

   (b)  the inclusion of a password with, the return for the purpose of
        authenticating or approving it. (Added 5 of 2003 s. 2)

(6) For the purposes of subsection (5)(a), a digital signature shall be-

   (a)  supported by a recognized certificate;

   (b)  generated within the validity of that certificate; and

   (c)  used in accordance with the terms of that certificate. (Added 14 of
        2004 s. 29)

(7) For the purposes of subsection (6)(a), a digital signature is taken to be
supported by a recognized certificate if it is taken to be supported by that
certificate under section 2(2) of the Electronic  Transactions Ordinance (
Cap 553). (Added 14 of 2004 s. 29)

(8) In subsection (6)(b), "within the validity of that certificate"
(在該證書的有效期內) has the meaning assigned to it by section 6(2)
of the Electronic Transactions Ordinance ( Cap 553). (Added 14 of 2004 s. 29)
___________________________________________________________________________
Note:

* Commencement date: 19 November 1993.

"active partner" (積極參與的合夥人)

"agent" (代理人)

"approved charitable donation" (認可慈善捐款)

"arrangement" (安排)

"assessable income" (應評稅入息)

"net assessable income" (應評稅入息實額)

"assessable profits" (應評稅利潤)

"assessor" (評稅主任)

"assistant commissioner" (助理局長)

"authorized representative" (獲授權代表)

"basis period" (評稅基期)

"bill of sale" (賣據)

"body of persons" (團體)

"business" (業務)

"certificate of deposit" (存款證)

"prescribed instrument" (訂明的票據)

"Commissioner" (局長)

"conditional sale agreement" (有條件售賣協議)

"corporation" (法團)

"debenture" (債權證)

"deposit" (存款)

"deputy commissioner" (副局長)

"digital signature" (數碼簽署)

"electronic record" (電子紀錄)

"executor" (遺囑執行人)

"financial institution" (財務機構)

"grandparent or grandparent of his or her spouse"
(該人的或其配偶的祖父母或外祖父母)

"hire-purchase agreement" (租購協議)

"Hong Kong currency" (港幣)

"husband" (丈夫)

"incapacitated person" (無行為能力的人)

"inspector" (稅務督察)

"lease" (租約)

"limited partnership" (有限責任合夥)

"mandatory contributions" (強制性供款)

"mandatory provident fund scheme" (強制性公積金計劃)

"marriage" (婚姻)

"married" (結婚)

"mortgage" (按揭)

"net chargeable income" (應課稅入息實額)

"occupational retirement scheme" (職業退休計劃)

"owner" (擁有人)

"parent or parent of his or her spouse" (該人的或其配偶的父或母)

"password" (通行密碼)

"person" (人、人士)

"precedent partner" (首合夥人)

"profits arising in or derived from Hong Kong"
(於香港產生或得自香港的利潤)

"receiver" (接管人)

"recognized certificate" (認可證書)

"recognized occupational retirement scheme" (認可職業退休計劃)

"recognized retirement scheme" (認可退休計劃)

"return" (報稅表)

"river trade limits" (內河航限)

"specified form" (指明的格式)

"spouse" (配偶)

"standard rate" (標準稅率) "tax" (稅、稅款、稅項)

"telefiling system" (電話報稅系統)

"trade" (行業、生意)

"trustee" (受託人)

"voluntary contributions" (自願性供款)

"wife" (妻子)

"year of assessment" (課稅年度)

"year preceding a year of assessment" (任何課稅年度的上一年)

"associated corporation" (相聯法團)

"control" (控制)