Partnership taxation in
Hong Kong
Hong Kong ( (US) or (UK); , ), officially the Hong Kong Special Administrative Region of the People's Republic of China (abbr. Hong Kong SAR or HKSAR), is a city and special administrative region of China on the eastern Pearl River Delta i ...
is the taxation of the profits or losses generated by
partnership business entities. First, these profits or losses of the partnership are assessed according to th
Hong Kong Inland Revenue Ordinance, Chapter 112, section 22. After assessment, then said profits or losses
flow through the partnership to the partners who are then taxed on their share of said profits or losses generated by the partnership without any taxes levied against the partnership.
Assessment of Partnership
The profits or losses of the partnership are assessed in one lump sum by the
managing partner
A partner in a law firm, accounting firm, consulting firm, or financial firm is a highly ranked position, traditionally indicating co-ownership of a partnership in which the partners were entitled to a share of the profits as "equity partners". Th ...
or
agent
Agent may refer to:
Espionage, investigation, and law
*, spies or intelligence officers
* Law of agency, laws involving a person authorized to act on behalf of another
** Agent of record, a person with a contractual agreement with an insuranc ...
.
[Inland Revenue Ordinance, Chapter 112, section 22](_blank)
/ref> The tax may be recoverable from the assets of the partnership or the partners directly even if the partnership has dissolved.
Partner's share
A partner is taxed according his or her share of the profits or losses generated by the partnership excluding partnership losses brought forward unde
section 19C
The partner's share in this partnership is governed b
Said partner's share equals to the sum of contributions made to the partnership as capital less distributions or constructive distributions. Such contributions may also include the partner's share of the profits plowed back into the partnership.
/ref> The partner's share is then added to the remaining partners to determine the proportionate share amendable also by any partnership agreement.
See also
* Partnership (Hong Kong)
*Partnership
A partnership is an arrangement where parties, known as business partners, agree to cooperate to advance their mutual interests. The partners in a partnership may be individuals, businesses, interest-based organizations, schools, governments ...
*Inland Revenue Ordinance Cap.112
The Inland Revenue Ordinance is one of Hong Kong's Ordinances. It regulates the inland revenue of Hong Kong.
Most commonly used sections
Interpretation
IRO Section.2 Interpretation of some terms using in the ordinance.
Property tax
IRO Se ...
Notes
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Taxation in Hong Kong
Law of Hong Kong
Business taxes
zh:香港稅務條例