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Hong Kong Fact-File Part 2:
Individual Business Domestic Taxation

2.13 Hong Kong Individual Artists' Royalties

The collection of royalties by individuals

Withholding tax has to be deducted by the payee of certain types of royalties, including for the showing of cinema and television films, the use of marketing materials and sound for such films, and the right to use patents, designs and copyright material inside and outside of Hong Kong. The rental, hire or other charge made for the use of moveable materials in Hong Kong is also subject to withholding tax.

There is generally no withholding tax on domestic royalty payments; in other instances, the rate of the withholding tax depends on the business relationship between the two parties and is 16.5% in the case of payment being made to an associated person or business. In all other cases the rate is 1.65% for any money received or accrued prior to 1 April 2003 and 4.95% for sums received or accrued after 1 April 2003.

The proportion of the gross amount of royalties on which the withholding tax is payable increases from 30% to 100% when payments are made to an affiliated offshore company. The payer of the royalties must pay the appropriate withholding tax to the IRD.
 

Introductory Guides

Brief, clearly written summaries with links to relevant sections of the Fact-File. The Fact-File itself is linked in full below.

 

Fact-File

Part 1: Hong Kong Business Formation for Individuals

  1. Hong Kong Individual Business Structures
  2. Hong Kong Individual Business Registration
  3. Hong Kong Individual Business Registration Cost
  4. Hong Kong Individual Business Licensing
  5. Hong Kong Foreigners in Business
  6. Hong Kong Business Organisations
  7. Hong Kong Business Accounting
  8. Hong Kong Family Business Ownership
  9. Hong Kong Venture Capital
  10. Hong Kong Individual Business Franchises

Part 2: Hong Kong Individual Business Domestic Taxation

  1. Hong Kong Individual Business Tax Residence Rules
  2. Hong Kong Permanent Establishment
  3. Hong Kong Individual Income Tax Rates and Bands
  4. Hong Kong Personal Allowances and Business Deductions
  5. Hong Kong Husband and Wife Partnerships
  6. Hong Kong Partnership Income Taxation
  7. Hong Kong Limited Companies Income Taxation
  8. Hong Kong Business Profit Retention
  9. Hong Kong Business Losses
  10. Hong Kong Value Added Tax (VAT)
  11. Hong Kong Individual Business Capital Gains Tax (CGT)
  12. Hong Kong Individual Business Other Taxes
  13. Hong Kong Individual Artists Royalties
  14. Hong Kong Individual Business Tax-Efficient Profit Distribution

Part 3: Hong Kong Individual Business International Taxation

  1. Hong Kong Individual Business International Tax Liability
  2. Hong Kong Individual Business Withholding Taxes
  3. Hong Kong Double Tax Treaties

Part 4: Hong Kong Individual Business Tax-Efficient Structures

  1. Hong Kong Individual Business Trusts and Foundations
  2. Hong Kong Individual Business for Non-Residents
  3. Hong Kong Individual Business use of Offshore
  4. Hong Kong Controlled Foreign Corporation (CFC) Rules
  5. Hong Kong Personal Estate and Inheritance Planning

Part 5: Hong Kong Small Business Incentive Programs

  1. Hong Kong Small Business Support Schemes
  2. Hong Kong Training Incentive Schemes
  3. Hong Kong R&D Tax Credits
  4. Hong Kong Individual Business Tax Holidays

Part 6: Hong Kong Individual Business Employment Issues

  1. Hong Kong Individual Business Employer Responsibilities
  2. Hong Kong Employment vs Self-Employment Tax Issues
  3. Hong Kong Apprenticeship and Work Experience Schemes
  4. Hong Kong Employee Dismissal Rules
  5. Hong Kong Business Owner Employment and Invoicing Rules

Part 7: Hong Kong Business Owner Welfare and Lifestyle

  1. Hong Kong Business Social Security
  2. Hong Kong Business Domestic Pensions
  3. Hong Kong Offshore and International Pensions
  4. Hong Kong Individual Business Healthcare
  5. Hong Kong Individual Business Banking Services
  6. Hong Kong Education
  7. Hong Kong Individual or Business Leaving Hong Kong
  8. Hong Kong Domestic Real Estate
  9. Hong Kong International Real Estate