Tax liability in Hong Kong

Rental income from real property

Taxable if the property is located in Hong Kong

Profits derived by an owner from the sale of real property

Taxable if the property is located in Hong Kong

Profits from the purchase and sale of listed shares and other listed securities

Taxable if the stock exchange where the shares or securities in question are traded is located in Hong Kong
Where the purchase and sale took place over-the-counter, taxable where the contracts of purchase and sale are effected in Hong Kong

Profits accruing to a business (other than a financial institution) from the purchase and sale of unlisted shares and other unlisted securities

Taxable where the contracts of purchase and sale are effected in Hong Kong

Service fee income

Taxable if the services which give rise to the payment of the fees are performed in Hong Kong

Royalties received by a business

Taxable if the licence or right of use is acquired and granted in Hong Kong

Royalties on intellectual property received from Hong Kong by a non-resident

Taxable if the intellectual property is used in Hong Kong
For royalties received or accrued on or after 25 June 2004, if the intellectual property is used outside Hong Kong, taxable if the royalty payment is deductible in ascertaining the assessable profits of the payer under profits tax

Interest accruing to a business (other than a financial institution)

Taxable if the lender provides the funds in Hong Kong to the borrower