1. What if an individual is both a resident of Hong Kong and the Mainland under the definition of the Comprehensive Arrangement?

1. What if an individual is both a resident of Hong Kong and the Mainland under the definition of the Comprehensive Arrangement?

A Hong Kong resident means an individual who ordinarily resides in Hong Kong, or an individual who stays in Hong Kong for more than 180 days during a year of assessment or for more than 300 days in two consecutive years of assessment (one of which is the relevant year of assessment). However, a holder of the Hong Kong Permanent Identity Card does not necessarily mean he/she is a Hong Kong resident for this purpose. 

The following criteria will determine whether someone is considered a resident of one side or the other, in order of priority: 

• which side one has a permanent home;
• which side one has closer personal and economic ties to;
• which side one typically resides in; and 
• by mutual consent of the two sides' competent authorities. 

Applying for Certificate of Resident Status to claim Tax Benefits

1. Claiming tax benefits in Hong Kong

• For the purpose of claiming tax benefits under Comprehensive Double Taxation Agreements / Arrangements (DTAs), The Inland Revenue Department issues a Certificate of Resident Status to a Hong Kong resident who needs proof of resident status. The Certificate of Resident Status should constitute a sufficient proof of the resident status of a Hong Kong resident. Applicants should be aware that issuance of a Certificate of Resident Status will not guarantee that they will be successful in their claim to benefits under the relevant DTA, which will be subject to the treaty partner’s determination and assessment.

   

Hong Kong resident individuals may apply for a Certificate of Resident Status in Hong Kong by completing Form IR1314A and submitting it to the Inland Revenue Department. In general, those individuals include:

• an individual who ordinarily resides in Hong Kong; or 
• an individual who spends more than 180 days in Hong Kong during the assessment year or more than 300 days over the course of two consecutive assessment years, one of which is the relevant assessment year.

In respect of the DTA between Mainland and Hong Kong, a Certificate of Resident Status issued to an applicant for a particular calendar year generally serves as a proof of the Hong Kong resident status of the applicant for that calendar year and the two succeeding calendar years. 

The Inland Revenue Department aims to issue a certificate of resident status within 21 working days of receiving a properly submitted application. Normally, this will be mailed to you; alternatively, you may request in writing to pick it up in person.

2. Making appeals or enquiries 

• A Hong Kong resident who wishes to dispute a tax assessment in Hong Kong may, by notice in writing to the Commissioner of Inland Revenue, object to the assessment within one month after the date of the notice of assessment.

   

  Where a Hong Kong resident considers that the Mainland tax imposed is not in line with the DTA, he/she should raise the issue with the relevant Mainland tax authority within the specified period (Note: If you cannot find out the contact details of Mainland tax authority, check with the Hong Kong Inland Revenue Department). If the matter could not be resolved, he/she may seek assistance from the Inland Revenue Department by submitting relevant information for examination. The Inland Revenue Department will consult the Mainland tax authority concerned, with a view to resolving the problem.

   

  For enquiries on matters relating to the DTA, you may send an email to the Inland Revenue Department at taxinfo@ird.gov.hk, or telephone: 187 8088.