### Inland Revenue Ordinance 《稅務條例》

14ZF. Commissioner’s determination—qualifying ship agent
(1) For the purposes of section 14ZD(4)(c), the Commissioner may, on application by a corporation, determine that the corporation is a qualifying ship agent for a year of assessment.
(2) A corporation may apply for the Commissioner’s determination under subsection (1) only if, for the year of assessment, the corporation satisfies neither of the following—
(a) the conditions specified in section 14ZD(5);
(b) the safe harbour rule under section 14ZE.
(3) The Commissioner may make a determination under subsection (1) only if the Commissioner is of the opinion that the corporation would, in its ordinary course of business, have satisfied the conditions specified in section 14ZD(5), or the safe harbour rule under section 14ZE, for the year of assessment.

14ZG. Carrying out of activities in Hong Kong—qualifying ship agent
(1) For the purposes of section 14ZD(7)(a)(ii), an activity producing the assessable profits of a corporation that fall within section 14ZD(1) (as read together with section 14ZD(2)) for a year of assessment is not considered to be carried out in Hong Kong by the corporation, or arranged by the corporation to be carried out in Hong Kong, during the basis period for the year of assessment unless the prescribed requirements are met.
(2) To avoid doubt, the fact that the prescribed requirements are not met for the purposes of subsection (1) does not imply that the assessable profits mentioned in that subsection do not arise in, or are not derived from, Hong Kong.
(3) In this section—
prescribed requirements (訂明要求) means the requirements prescribed in section 5 of Schedule 17FB.

14ZH. Losses sustained by qualifying ship agent
(1) Any loss sustained by a corporation from a qualifying ship agency activity in a year of assessment is, to the extent specified in subsection (2), not available for set off against any of its assessable profits for the year of assessment or any subsequent year of assessment if the activity is carried out—
(a) for its connected person that is a ship operator; and
(b) in respect of any activity carried out by the connected person in the operation of a ship.
(2) The extent specified for subsection (1) is the extent to which the activity mentioned in paragraph (b) of that subsection generates income—
(a) that is a sum falling within paragraph (a) or (b) of the definition of exempt sums

### Inland Revenue Ordinance 《稅務條例》

14ZI. Anti-avoidance provisions relating to arm’s length principle—qualifying ship agent
(1) Subsection (2) applies if—
(a) conditions are made or imposed between a corporation that is a qualifying ship agent and a person who is an associate of the corporation, in their commercial or financial relations in connection with a qualifying ship agency activity; and
(b) the conditions differ from those that would be made or imposed if the person were not such an associate.
(2) Any profits that, but for the conditions referred to in subsection (1)(a), would have accrued to the corporation or the person and, by reason of those conditions, have not so accrued, are to be included in the profits of the corporation or the person and taxed in accordance with this Part.

14ZJ. Anti-avoidance provisions relating to arrangement to obtain tax benefit—qualifying ship agent
(1) If—
(a) a corporation that is a qualifying ship agent enters into an arrangement; and
(b) the Commissioner is satisfied that the main purpose, or one of the main purposes, of the corporation in entering into the arrangement is—
(i) to obtain a tax benefit (whether for the corporation or another person) in relation to a liability to pay profits tax under this Ordinance; or
(ii) to obtain a tax benefit (whether for the corporation or another person) under a tax treaty that is contrary to the purpose of the treaty,
section 14ZD(1) does not apply in relation to any assessable profits accrued to the corporation during a basis period relevant to the arrangement.
(2) For the purposes of this section, the basis period of a year of assessment is relevant to an arrangement if, in the Commissioner’s opinion, the arrangement has effect during that basis period.

14ZK. Power to amend Part 2 of Schedule 17FB
The Commissioner may by order published in the Gazette amend Part 2 of Schedule 17FB.

14ZL. Interpretation of Subdivision 7 of Division 2 of Part 4
(1) In this Subdivision—
qualifying ship management activity (合資格船舶管理活動)—see subsection (3);
qualifying ship manager (合資格船舶管理商)—see section 14ZM(4);
ship management activity (船舶管理活動)—see section 6(1) of Schedule 17FB.
(2) Also, Part 1 of Schedule 17FB contains interpretation provisions that apply to this Subdivision in accordance with their terms.
(3) A ship management activity carried out by a corporation is a qualifying ship management activity if the activity is carried out in the ordinary course of the corporation’s business carried on in Hong Kong.
(4) A note located in the text of this Subdivision is provided for information only and has no legislative effect.

### Inland Revenue Ordinance 《稅務條例》

14ZM. Concession for qualifying ship manager
(1) For the purposes of this Part and subject to subsections (7) and (9), the assessable profits of a corporation that is a qualifying ship manager for a year of assessment are chargeable to tax under this Part at—
(a) to the extent to which those profits are assessable profits derived from its qualifying ship management activity—
(i) that is carried out for its associated qualifying ship lessor; or
(ii) that is carried out—
(A) for its associated qualifying ship leasing manager; and
(B) in respect of that leasing manager’s qualifying ship leasing management activity carried out for that leasing manager’s associated qualifying ship lessor—
the rate specified in Schedule 8C; or
(b) to the extent to which those profits are assessable profits derived from its qualifying ship management activity other than one mentioned in paragraph (a)—one-half of the rate specified in Schedule 8.
(2) In ascertaining the assessable profits of a corporation for the purposes of subsection (1), there are to be excluded, to the extent specified in subsection (3), any profits derived by the corporation from its qualifying ship management activity that is carried out—
(a) for its connected person that is a ship operator; and
(b) in respect of any activity carried out by the connected person in the operation of a ship.
(3) The extent specified for subsection (2) is the extent to which the activity mentioned in paragraph (b) of that subsection generates income—
(a) that is a sum falling within paragraph (a) or (b) of the definition of exempt sums

14ZN. Safe harbour rule—qualifying ship manager
(1) For the purposes of section 14ZM(4)(b), a corporation satisfies the safe harbour rule for a year of assessment (subject year

14ZO. Commissioner’s determination—qualifying ship manager
(1) For the purposes of section 14ZM(4)(c), the Commissioner may, on application by a corporation, determine that the corporation is a qualifying ship manager for a year of assessment.
(2) A corporation may apply for the Commissioner’s determination under subsection (1) only if, for the year of assessment, the corporation satisfies neither of the following—
(a) the conditions specified in section 14ZM(5);
(b) the safe harbour rule under section 14ZN.
(3) The Commissioner may make a determination under subsection (1) only if the Commissioner is of the opinion that the corporation would, in its ordinary course of business, have satisfied the conditions specified in section 14ZM(5), or the safe harbour rule under section 14ZN, for the year of assessment.