In general, application of advance ruling is only eligible when it regards certainty in respect of determination on the source of income, whether or not a taxpayer is carrying on business in Hong Kong. The application to the Commissioner of Hong Kong Inland Revenue Department (HKIRD) must be submitted before the submission deadline of the relevant tax return (e.g. Profits Tax Return for Corporation).
- Question(s) must be clearly stated to the Commissioner for review and answer
- Issue(s) must be identified in which the taxpayer needs to resolve
- A full description of the facts and the arrangement in question to be provided
- Provision(s) of the IRO must be stated in respect of which the ruling is sought
- Propositions of law with law cases must be stated which are relevant to the issues raised in the application. Also any legal reasons and arguments should be mentioned to support the application to the Commissioner
- The applicant must provide a draft ruling
Note: The Commissioner has the right at any time request further relevant information when reviewing the application.