### Inland Revenue Ordinance 《稅務條例》

20A. Persons chargeable on behalf of a non-resident
(1) A non-resident person shall be chargeable to tax either directly or in the name of his agent in respect of all his profits arising in or derived from Hong Kong from any trade, profession or business carried on in Hong Kong whether such agent has the receipt of the profits or not, and the tax so charged whether directly or in the name of the agent shall be recoverable by all means provided in this Ordinance out of the assets of the non-resident person or from the agent. Where there are more agents than one they may be charged to tax jointly or severally in respect of the profits of the non-resident person and shall be jointly and severally liable for the tax thereon. (Amended 7 of 1986 s. 12) 
(2) Every person chargeable to tax as agent, or from whom tax is recoverable in respect of the profits of another person, shall retain out of any assets coming into his possession or control on behalf of such other person or in his capacity as agent so much thereof as shall be sufficient to produce the amount of such tax, and he shall be and is hereby indemnified against any person whomsoever in respect of his retention of such assets. 
(3) Notwithstanding anything contained in subsections (1) and (2), any person who sells any goods in Hong Kong on behalf of a non-resident person shall furnish quarterly to the Commissioner a return showing the gross proceeds from such sales and shall at the same time pay to the Commissioner a sum equal to 1% of such proceeds or such lesser sum as may have been agreed with the Commissioner. On receipt of such sum the Commissioner shall issue a certificate in the form specified by the Board of Inland Revenue: (Amended 39 of 1969 s. 3; 7 of 1986 s. 12) 
Provided that the Commissioner may exempt any such person from the provisions of this subsection on such conditions as he may consider fit. 
(Added 49 of 1956 s. 17)

### Inland Revenue Ordinance 《稅務條例》

20AA. Persons not treated as agents
(1) For the purposes of section 20A, the following persons are deemed not to be an agent of a non-resident person—
(a) where profits are chargeable to tax under this Part by reference to so much of any trade, profession or business as relates to transactions carried out through a broker and falling within subsection (2), the broker;
(b) where profits are chargeable to tax under this Part by reference to so much of any trade, profession or business as relates to transactions carried out through an approved investment adviser and falling within subsection (3), the approved investment adviser.
(2) Where any profits are chargeable to tax under this Part by reference to so much of any trade, profession or business as relates to a transaction carried out through a broker, the transaction is taken, in relation to the profits (the taxable profits

### Inland Revenue Ordinance 《稅務條例》

20AD. Loss from transactions referred to in sections 20AC(1) and 20ACA(1) not available for set off
Despite anything in this Part—
(a) any loss sustained by a non-resident person from a transaction referred to in section 20AC(1) in a year of assessment in which the non-resident person has not at any time carried on any trade, profession or business in Hong Kong involving any transaction other than a transaction referred to in that section, is not available for set off against any of the person’s assessable profits for any subsequent year of assessment; and
(b) any loss sustained by a special purpose vehicle as defined by section 20ACA(2) from a transaction referred to in section 20ACA(1) in a year of assessment in which the special purpose vehicle has not at any time carried on any trade, profession or business in Hong Kong involving any transaction other than a transaction referred to in section 20ACA(1), is not available for set off against any of its assessable profits for any subsequent year of assessment.
(Replaced 13 of 2015 s. 6)

### Inland Revenue Ordinance 《稅務條例》

20AN. Certain profits of certain funds exempt from payment of profits tax
(1) This section applies subject to section 20AS.
(2) If, in respect of a fund, a condition specified in subsection (3) is met at all times during the basis period for a year of assessment, the fund is, subject to sections 20AP and 20AQ, exempt from the payment of tax otherwise chargeable under this Part in respect of its assessable profits for the basis period earned from—
(a) transactions in assets of a class specified in Schedule 16C (qualifying transactions

### Inland Revenue Ordinance 《稅務條例》

20AO. Certain profits of special purpose entities exempt from payment of profits tax
(1) This section applies to a special purpose entity owned by a fund that is exempt from the payment of tax under section 20AN in respect of its assessable profits for a year of assessment.
(2) The special purpose entity is, subject to sections 20AP and 20AQ, exempt to the extent provided by subsection (3) from the payment of tax chargeable under this Part in respect of its assessable profits for the year of assessment earned from—
(a) transactions in shares, stocks, debentures, loan stocks, funds, bonds or notes (specified securities

20AP. When does exemption under section 20AN or 20AO not apply to specified body holding immovable property through another company
(1) Subject to section 20AR, this section applies if, during the basis period for a year of assessment—
(a) a specified body carries out transactions in shares, stocks, debentures, loan stocks, funds, bonds or notes (specified securities

20AQ. When does exemption under section 20AN or 20AO not apply to specified body not holding immovable property through another company
(1) Subject to section 20AR, this section applies if, during the basis period for a year of assessment—
(a) a specified body carries out transactions in shares, stocks, debentures, loan stocks, funds, bonds or notes (specified securities

20AR. Supplementary provision to sections 20AP and 20AQ
(1) Sections 20AP and 20AQ do not apply to a partner fund carrying on a trade, profession or business that involves transactions in shares of an investee company during the basis period for a year of assessment.
(2) In this section—
investee company (獲投資公司) means—(a) a corporation that has ITVFC and a partner fund as shareholders under the ITVF Scheme; or
(b) a corporation that—
(i) had, at any time, ITVFC and a partner fund (Fund A

20AS. When does exemption under section 20AN not apply to open-ended fund companies
Despite section 20AN, if, during the basis period for a year of assessment, an open-ended fund company—
(a) carries on a direct trading or direct business undertaking in Hong Kong in assets of a class that is not specified in Schedule 16C (non-Schedule 16C class