Inland Revenue (Profits Tax Concessions for Insurance-related Businesses) (Threshold Requirements) Notice
(Enacting provision omitted—E.R. 3 of 2021)
[19 March 2021]
(Omitted as spent—E.R. 3 of 2021)
The threshold requirements for determining whether, for the purposes of section 14B(2)(a) of the Ordinance, an activity producing the assessable profits of a corporation that fall within section 14B(1)(c) of the Ordinance is carried out in Hong Kong by the corporation or is arranged by the corporation to be carried out in Hong Kong for a year of assessment are specified in subsections (2) and (3).
During the basis period for the year of assessment concerned, the average number of full time employees in Hong Kong who carry out the activity and have the qualifications necessary for doing so must be—
in the opinion of the Commissioner, adequate for the corporation for that year of assessment; and
in any event not less than—
if the corporation is a mutual insurance corporation—4; or
if the corporation is not a mutual insurance corporation—7.
During the basis period for the year of assessment concerned, the amount of operating expenditure incurred by the corporation in Hong Kong for the activity must be—
in the opinion of the Commissioner, adequate for the corporation for that year of assessment; and
in any event not less than—
if the corporation is a mutual insurance corporation—$2,000,000; or
if the corporation is not a mutual insurance corporation—$4,000,000.
The threshold requirements for determining whether, for the purposes of section 14B(2)(a) of the Ordinance, an activity producing the assessable profits of a corporation that fall within section 14B(1)(d) of the Ordinance is carried out in Hong Kong by the corporation or is arranged by the corporation to be carried out in Hong Kong for a year of assessment are specified in subsections (2) and (3).
During the basis period for the year of assessment concerned, the average number of full time employees in Hong Kong who carry out the activity and have the qualifications necessary for doing so must be—
in the opinion of the Commissioner, adequate for the corporation for that year of assessment; and
in any event not less than 3.
During the basis period for the year of assessment concerned, the amount of operating expenditure incurred by the corporation in Hong Kong for the activity must be—
in the opinion of the Commissioner, adequate for the corporation for that year of assessment; and
in any event not less than $1,000,000.