Did you know that a foreign entity with no physical presence in Hong Kong other than a server could still be defined as a permanent establishment (PE) and therefore liable to tax in the SAR?
In March 2020, the Inland Revenue Department (IRD) revised its Departmental Interpretation and Practice Note No.39, also known as DIPN 39, setting out taxation principles that apply broadly to digital businesses, e-commerce transactions and digital assets. The revised DIPN also sets out the IRD's position on the taxation of issuers of Initial Coin Offerings (ICOs).
At this webinar, Jo-An Yee and Kathy Kun, respectively Partner and Senior Manager of Ernst & Young Tax Services Limited will provide an overview of DIPN 39 and address the following:
- Will maintaining a datacentre or server alone expose a non-Hong Kong resident enterprise to Hong Kong profits tax;
- When does a place/computer equipment constitute a PE;
- When will a Hong Kong taxpayer be required to withhold tax for payments made to a non-Hong Kong resident;
- How does the concept of source/territorial concept apply to a digital business under the new rules;
- How is a non-resident enterprise with PE in Hong Kong affected by the rule that prohibits fragmentation of activities between closely related parties.
- What is the tax treatment of proceeds from an ICO.
Ms Yee specialises in International Tax & Transaction Services and leads the Technology, Media & Telecommunications (TMT) Tax Team at EY. Ms Kun advises on technical taxation matters and is a Senior Manager of the National Tax Centre of EY.
Please refer to the following on the virtual seminar:
- Details such as the webinar link and participation in the Q&A session will be issued 3 days before the event.
- Instructions on downloading Zoom and joining a meeting can be found here. We suggest that you familiarize yourself with the software in advance of the webinar.
- Please log in 15 minutes (at 1:45pm) before the event begins, through the link that will be sent to your registered email. This will allow time to address any technical issues that may arise.