Q:
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Who is an entertainer or sportsman?
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A:
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According to the Inland Revenue Ordinance (“IRO”), it means a person, other than a corporation, who gives performances (whether alone or with other persons) in his/her character as an entertainer or sportsman in any kind of entertainment or sport including activity in a live or recorded form and activity which the public is or may be permitted to see or hear, whether for payment or not.
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Q:
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How non-HK resident entertainers and sportsmen are chargeable?
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A:
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Sums received from performances in Hong Kong given by them on or in connection with a commercial occasion or event are subject to Profits Tax.
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Q:
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How can they pay the tax?
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A:
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The tax would be charged in the name of Hong Kong Payer. According to the IRO, the Hong Kong Payer is a person who made the payment to that non-HK resident entertainer or sportsman or his/her agent. Generally, the payer would be the Hong Kong promoter or sponsor of the activity concerned.
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Q:
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What are the responsibilities of the Hong Kong Payer?
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A:
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The Hong Kong payer is responsible for completing the relevant tax return (Form IR623) to report the gross amount payable to the non-HK resident entertainer or sportsman (if required) and settling the tax due.
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Q:
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Is the Hong Kong payer required to retain/withhold any amount from the sum to be paid to the non-HK resident entertainers or sportsmen?
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A:
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The Hong Kong Payer should retain a percentage of the gross amount payable to the entertainer or sportsman or his/her agent to ensure there will be sufficient fund for tax payment. The percentage is shown as follows:
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Year of Assessment 2014/15 and onwards
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Performance is procured directly with the entertainer / sportsman
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10%
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Performance is procured through a non-resident agent who is:
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An individual person or a partnership
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10%
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A corporate agent or a corporation
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11%
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FAQ
