### Inland Revenue Ordinance 《稅務條例》

15F. Sums derived from intellectual property by non-Hong Kong resident associates
(1) For the purposes of this section, a person makes value creation contributions in relation to any intellectual property if the person has made contributions in relation to the intellectual property through—
(a) performing the functions of and assuming risks relating to the development, enhancement, maintenance, protection or exploitation of the intellectual property; or
(b) providing assets in and assuming risks relating to the development, enhancement, maintenance, protection or exploitation of the intellectual property.
(2) This section applies if—
(a) a person has made value creation contributions in Hong Kong in relation to any intellectual property;
(b) a sum (relevant sum) accrues to an associate of the person, or is received by or for the benefit of the associate, in respect of—
(i) the exhibition or use of, or a right to exhibit or use, (whether in or outside Hong Kong) the intellectual property; or
(ii) the imparting or undertaking to impart knowledge directly or indirectly connected with the use (whether in or outside Hong Kong) of the intellectual property; and
(c) the associate is a non-Hong Kong resident person.
(3) The part of the relevant sum that is attributable to the person’s value creation contributions in Hong Kong (attributable amount) is to be regarded as a trading receipt arising in or derived from Hong Kong by the person from a trade, profession or business carried on in Hong Kong and the person is accordingly chargeable to profits tax in respect of the attributable amount.
(4) The associate is not to be chargeable to profits tax in respect of the attributable amount.
(5) In this section—
associate (相聯者) has the meaning given by section 20AC(6);

intellectual property (知識產權) means—
(a) cinematograph or television film or tape, any sound recording, any advertising material connected with such film, tape or recording; or
(b) patent, design, trade mark, copyright material, layout-design (topography) of an integrated circuit, performer’s right, plant variety right, secret process or formula, or other property or right of a similar nature;

non-Hong Kong resident person (非香港居民人士) has the meaning given by section 50AAC(1);
performer (表演者) has the meaning given by section 200(2) of the Copyright Ordinance (Cap. 528).
(Added 27 of 2018 s. 14)

### Inland Revenue Ordinance 《稅務條例》

15FA. Sums derived from funding leases of aircraft
For the purposes of this Part, if a person is engaged in a business of granting a right to use an aircraft under a funding lease as defined by section 14G(1), the finance charges or interest received by or accrued to the person for the grant of the right to use the aircraft are to be regarded as sums received by or accrued to the person by way of interest on money lent by the person.
(Added 5 of 2024 s. 10)

15G. Sums derived from funding leases of ships
To avoid doubt, for the purposes of this Part, if a person is engaged in a business of granting a right to use a ship under a funding lease as defined by section 14O(1), the finance charges or interest received by or accrued to the person for the grant of the right to use the ship are to be regarded as sums received by or accrued to the person by way of interest on money lent by the person.
(Added 5 of 2020 s. 7)

### Inland Revenue Ordinance 《稅務條例》

15I. Specified foreign-sourced income regarded as arising in or derived from Hong Kong
(1) For charging profits tax, specified foreign-sourced income to which this subsection applies—
(a) is to be regarded as a receipt arising in or derived from Hong Kong for the basis period of the year of assessment during which the income is received in Hong Kong; and
(b) is to be regarded as not arising from the sale of capital assets even if it so arises.
(2) Subsection (1) is subject to Subdivision 3.
(3) Subsection (1) applies to specified foreign-sourced income that—
(a) is received in Hong Kong by an MNE entity carrying on a trade, profession or business in Hong Kong; and
(b) is not otherwise chargeable to profits tax under this Part.
(4) Despite subsection (3), if a sum is both—
(a) a sum to which section 15 or 15F applies; and
(b) but for this subsection, income to which subsection (1) would have applied,
subsection (1) does not apply to the sum.
(5) To avoid doubt, if—
(a) any specified foreign-sourced income is received in Hong Kong by an MNE entity after the entity ceases to carry on a trade, profession or business in Hong Kong; and
(b) had the income been received before the cessation, it would have been chargeable to profits tax because of subsection (1),
section 15D applies in relation to the income.

15J. Notification
If an MNE entity is chargeable to profits tax in respect of any specified foreign-sourced income under this Part because of section 15I(1), the entity must notify the Commissioner in writing that the entity is so chargeable within 4 months after the end of the basis period of the year of assessment during which the income is received in Hong Kong, unless the entity has already been required to furnish a return under section 51(1).

### Inland Revenue Ordinance 《稅務條例》

15L. Exception 2: excepted portion of qualifying IP income ascertained in accordance with nexus requirement
(1) If any specified foreign-sourced income received in Hong Kong by an MNE entity is qualifying IP income, section 15I(1) does not operate in relation to the excepted portion of the income ascertained under Part 2 of Schedule 17FC.
(2) Part 3 of Schedule 17FC applies in relation to the qualifying IP income.
(3) The Secretary for Financial Services and the Treasury may, by notice published in the Gazette, amend Schedule 17FC.
(4) In this section—
excepted portion (例外部分)—see section 3 of Schedule 17FC;
qualifying IP income (合資格知識產權收入) has the meaning given by section 1(2) of Schedule 17FC.

15M. Exception 3: dividend or equity interest disposal gain subject to participation requirement being met
(Amended 32 of 2023 s. 5)(1) Subject to section 15N, section 15I(1) does not operate in relation to specified foreign-sourced income received in Hong Kong by an MNE entity if—
(a) the entity is—
(i) a Hong Kong resident person; or
(ii) a non-Hong Kong resident person who has a permanent establishment in Hong Kong;
(b) the income is—
(i) if the entity is a Hong Kong resident person—a dividend or equity interest disposal gain; or
(ii) if the entity is a non-Hong Kong resident person—a dividend or equity interest disposal gain attributable to the entity’s permanent establishment in Hong Kong under section 50AAK; and (Amended 32 of 2023 s. 5)
(c) the participation requirement specified in subsection (2) is met.
(2) The participation requirement is that the MNE entity has continuously held not less than 5% of equity interests in the investee entity for a period of not less than 12 months immediately before the specified foreign-sourced income accrues to the MNE entity.
(3) In this section—
investee entity (獲投資實體) means—(a) in relation to an MNE entity that receives a dividend—the entity that distributes the dividend; or
(b) in relation to an MNE entity that receives an equity interest disposal gain—the entity the equity interests in which are sold; (Amended 32 of 2023 s. 5)

non-Hong Kong resident person (非香港居民人士) has the meaning given by section 50AAC(1).