Q：
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What are the objectives of the advance ruling system?
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A：
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The main objectives of the advance ruling service are to:
1.
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provide a degree of certainty to the person who applies for a ruling about the tax treatments basing on the current tax legislation for seriously contemplated arrangements;
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2.
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promote consistency in the application of the IRO; and
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3.
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minimize disputes between the IRD and the person.
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Q：
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Can I apply for an advance ruling for a hypothetical or speculative arrangement?
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A：
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No, and advance ruling will only be given for a seriously contemplated arrangement.
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Q：
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How can I apply for an advance ruling in Hong Kong?
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A：
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Applicants may lodge their application for an advance ruling by completing the Form IR1297 and submitting together with the required information/documents and relevant application fee.
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Q：
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How much is the application fee in Hong Kong?
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A：
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The fees payable for an application for a ruling are as follows:
1.
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Application fee
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Type of rulings
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Application Fee
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Time Specified
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for a ruling on whether profits are to be treated as chargeable to profits tax under section 14 of the IRO as arising in or derived from Hong Kong
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HK$45,000
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23 hours
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for a ruling on whether remuneration is to be treated as chargeable to salaries tax under section 9A of the IRO
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HK$15,000
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11 hours
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for any other ruling
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HK$15,000
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7 hours
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2.
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Additional fee needs to be paid if the time spent for the application exceeded the time specified as per above. The additional fee will be calculated on the basis of each hour or part hour spent by the following:
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Type
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Fee
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a Deputy Commissioner
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HK$2,650
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an Assistant Commissioner
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HK$2,240
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any other person appointed under the IRO
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HK$1,730
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Aside from the above, reimbursement shall also be made by the application for the following:
(1)
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any fees paid by IRD to any person if IRD requires external advice; and
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(2)
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any costs and reasonable disbursements incurred by IRD.
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Q：
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The ruling issued by IRD was unfavourable to me. Can I object or appeal IRD’s ruling?
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A：
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No, once a ruling has been issued by IRD, no further correspondence will be entertained. A ruling made by IRD is final. However, the application may choose to not carry out the proposed arrangement.
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FAQ
