Unit_8_Partnership_and_other_cases

23b3 continued excluding incomefromgoodsintransit

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Unformatted text preview: s at HK waters could be disregarded by CIR, e.g. shelter from typhoon, refueling, for supply of water and food, patient on board to be Unit 8 ­ Shipping Company Unit HK Assessable Profits of HK ship owners [s.23B(3)] = Total shipping profits x Relevant sums / Total shipping income Relevant sums are receipts from Carriage of passengers & goods boarding in HK Towage within HK waters Dredging operations within HK waters Charter hire for ship operation in HK waters Charter hire where one party is a relevant limited partnership 50% charter hire from ship navigating between HK waters and river trade limits Unit 8 ­ Shipping Company Unit Relevant Sums of HK ship owners [s.23B(3)] (continued) Excluding income from ‘goods in transit’ Income from re­embarking passengers [Note: Original port of loading/boarding is not Hong Kong] Unit 8 ­ Shipping Company Unit Assessable Profits of HK ship owners [s.23B(3)] (continued) Total shipping profits are ship owner’s worldwide profits as presented in the accounts with adjustments [s.23B(12)] Total shipping income are ship owner’s worldwide income Unit 8 ­ Shipping Company Unit Assessable Profits of HK ship owners [s.23B(3)] (continued) Alternate assessment [s.23B(4)] Assessable Profits = Fair percentage x relevant sums Ship owner elects to be assessed under [s.23B(3)] within 2 years from end of assessment Unit 8 ­ Shipping Company Unit Source of income from dealing in ships depends on where contracts of sale and purchase are effected. No apportionment basis in this case. Source of income as a shipping agent depends on where services are rendered. Apportionment is possible. Unit 8 ­ Shipping Company Unit To encourage ship owners to register their ships in HK, following incomes are exempted for ships registered with Marine Department Sums attributable to carriage of passengers or goods within HK waters to sea waters (i.e. international waters) Sums attributable to towage operation proceeding from HK waters to sea waters...
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