Hong Kong has successfully entered into Comprehensive Double Taxation Agreements ("CDTAs") with 40 jurisdictions by the end of 2018, most of which were concluded after 2010. The positive impact of CDTAs is the reduction or elimination of double taxation on certain cross-border transactions although to enjoy these tax treaty benefits, it is necessary to first obtain Hong Kong resident status. Such status is also required when applying safe-harbour rules for beneficial ownership introduced under Public Notice  No. 9 ("PN9") issued by Mainland China's State Administration of Taxation.
To prevent treaty abuse and for Hong Kong to be regarded as a responsible treaty partner, the practice and position of the Inland Revenue Department ("IRD") in issuing certificate of resident status is evolving and has become more stringent. How can taxpayers respond? What can be done if dispute arises with the IRD?
At this roundtable talk, Wilson Cheng and Cherry Lam from EY will examine the benefits, procedures and criteria for obtaining Hong Kong resident status. They will also touch on the development of PN9, guidelines provided by and ways to resolve disputes with the IRD.