Royalties
Withholding tax equal to 30% of the appropriate profits tax rate must be withheld from royalties paid to non-residents from sources such as patents and copyrights.
Current rates are:
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5.25% for a corporate recipient; and |
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4.65% (4.8% with effect from April 2004) for anon-corporate recipient. |
The payment of royalties and licence fees to associated non-residents is subject to profits tax at a full rate of 17.5% for corporations and 16% for non-corporations, unless the Commissioner is satisfied that no person carrying on a trade, profession or business in Hong Kong has at any time wholly or partly owned the property in respect of which the sum is paid.