### Inland Revenue Ordinance 《稅務條例》

40AT. Deemed proceeds of sale
For the purposes of section 14IK, 16B(5), 16E(3), 16EB(2), 16G(3), 16J, 35, 38 or 39D, or section 16 or 17 of Schedule 45, if a person’s specified asset is deemed to have been sold under section 40AS(1), the person is deemed to have received proceeds of sale of the specified asset of an amount equal to the sum ascertained under section 40AS(1).
(Amended 5 of 2024 s. 20)

40AU. Deemed expenditure
For the purpose of computing the chargeable profits, under Part 4, of a person—
(a) to whom a specified asset is transferred in a way referred to in section 40AP(a); or
(b) who succeeds to a specified asset in the way referred to in section 40AP(b),
the person is deemed to have incurred expenditure on the purchase of the specified asset of an amount equal to the sum ascertained under section 40AS(1).

40AV. Schedule 16E: tax treatment of family-owned investment holding vehicle and family-owned special purpose entity
(1) Schedule 16E contains provisions about—
(a) the tax treatment of a family-owned investment holding vehicle within the meaning of that Schedule; and
(b) the tax treatment of a family-owned special purpose entity within the meaning of that Schedule.
(2) Schedules 16F, 16G, 16H, 16I, 16J and 16K contain provisions supplementary to Schedule 16E.
(3) Schedules 16E, 16F, 16G, 16H, 16I, 16J and 16K apply in respect of a year of assessment commencing on or after 1 April 2022.

### Inland Revenue Ordinance 《稅務條例》

40AW. Power to amend Schedule 16E
(1) The Secretary for Financial Services and the Treasury may, by notice published in the Gazette, amend—
(a) the number specified in section 10(1)(b)(ii) of Schedule 16E;
(b) the amounts specified in sections 10(1)(c)(ii) and 11(2), (4) and (6) of Schedule 16E; and
(c) the rates specified in sections 24(2) and 25(2) of Schedule 16E.
(2) A notice published under subsection (1) may contain any incidental, supplemental, evidential, consequential, savings and transitional provisions that are necessary and expedient in consequence of the amendments made under that subsection.

40AX. Schedule 17K: disposal gain by holder of qualifying equity interests
Schedule 17K contains provisions for a gain or profit that an entity derives from a disposal of equity interests in another entity to be regarded, in circumstances specified in that Schedule, as arising from the sale of capital assets.

40B. Interpretation
In this Part, unless the context otherwise requires—
adjustment factor (調整分數) has the same meaning as in section 19CA; (Added 32 of 1998 s. 26)
concessionary trading receipts (獲特惠的營業收入) has the same meaning as in section 19CA; (Added 32 of 1998 s. 26)
income (入息), in relation to any person, means income derived beneficially by that person;
individual (個人) means a person electing or who has elected to be chargeable to tax under this Part;
joint total income (共同入息總額) means joint total income calculated in accordance with section 42A;
loss and losses (虧損) do not include a loss sustained by a person acting in his capacity as trustee of a trust.
(Replaced 43 of 1989 s. 11)

### Inland Revenue Ordinance 《稅務條例》

50AAA. Unilateral tax credits—no double taxation arrangements or specified DT arrangements made
(1) This section applies if—
(a) no double taxation arrangements have been made with the government of a territory outside Hong Kong (subject territory

50AAAB. Unilateral tax credits—no relief for underlying profits etc. under specified DT arrangements made
(1) This section applies if—
(a) a Hong Kong resident person (subject person

50AAAC. Supplementary provision to section 50AAAB: determining whether interest is adequate
(1) A person (person A

50AA. General provisions on relief from double taxation
(1) This section applies if, in respect of tax (foreign tax

### Inland Revenue Ordinance 《稅務條例》

50AAB. Mutual agreement procedure and arbitration under double taxation arrangements
(1) This section applies if a person (taxpayer) presents a case for mutual agreement procedure under double taxation arrangements made in relation to a DTA territory, with or without an issue in the case also being referred for arbitration under the arrangements.
(2) The Commissioner may give a notice to the taxpayer requiring the taxpayer to provide information regarding the case that is in the possession, custody or control of the taxpayer.
(3) The Commissioner may request the taxpayer—
(a) to pay any costs and reasonable expenses incurred by the Commissioner in relation to the mutual agreement procedure and, if an issue in the case is further referred for arbitration, in relation to the arbitration; or
(b) to reimburse the Commissioner for the costs and expenses.
(4) Any amount payable or reimbursable under subsection (3) is recoverable as a civil debt due to the Government.
(5) Subsection (6) applies if, for a case presented for mutual agreement procedure—
(a) the Commissioner arrives at a solution unilaterally;
(b) the competent authorities of Hong Kong and the DTA territory reach a mutual agreement; or
(c) after the case or an issue in the case is referred for arbitration—
(i) a solution is arrived at by the Commissioner unilaterally, or a mutual agreement is reached between the competent authorities of Hong Kong and the DTA territory, before a decision is delivered by the arbitrators; or
(ii) a decision is delivered by the arbitrators.
(6) The Commissioner must give effect to the solution, agreement or decision (MAP solution) by making any adjustment (other than in relation to any additional tax, fines and penalties imposed under Part 14) that is appropriate as a result of the MAP solution, despite any provision in this Ordinance.
(7) If the Commissioner considers it appropriate to do so having regard to a MAP solution, the Commissioner may adjust any additional tax imposed under Part 14 unless the Board of Review or the court has delivered a decision, opinion, determination or direction in respect of the assessment of the additional tax.
(8) The Commissioner may decide the way in which an adjustment under subsection (6) or (7) is to be made, including by way of discharge or repayment of tax, the allowance of credit against tax payable in Hong Kong, or the making of an assessment.
(9) In this section—
arbitrator (仲裁員) means a person who is appointed by mutual agreement between the competent authorities of Hong Kong and the DTA territory concerned to conduct arbitration;
competent authority (主管當局) has the meaning given by the double taxation arrangements concerned.
(Added 27 of 2018 s. 8)