Hong Kong Tax
Tax Treatment of Royalty Income derived from licensing of
Intellectual Property Rights
香港税制：知的財産のライセンス料によるロイヤルティ所得源に対する税制
Under the “territorial source” concept for Hong Kong taxation, different tax treatments apply to the royalty income for the use of intellectual property (“IP”) received by either a Hong Kong resident (i.e. a person who carries on trade or business in Hong Kong) or a non-Hong Kong resident.
In general, IP refers the following intangible assets:
- Registered trademark
- Patent right
- Copyrights
- Registered design
- Trade secrets (undisclosed commercial information)
- Protection of layout-design (topography) of integrated circuit
- Plant varieties protection
The board guiding principle in determining the source of royalty income is that “one looks to see what the taxpayer has done to earn the profits in question and where he has done it”.
Royalty Income Received by a Hong Kong resident…
The Inland Revenue Department (“IRD”) generally follows Section 14 of the Inland Revenue Ordinance (“IRO”) for royalties derived from the licensing of IP by a Hong Kong resident but has different views on the source of royalty income in the scenarios below:
- The IP is created or developed by the Hong Kong resident
The source of the royalty income is determined by the place where the IP was developed as the effort and expenses in developing the IP were very likely incurred in Hong Kong. In addition, the place of use of the IP is not relevant in determining the source of royalty income. As such, the royalty income derived from licensing of IP is fully taxable under Hong Kong Profits Tax.
- The IP is purchased by the Hong Kong resident
If the Hong Kong resident acquired the proprietary interest of the IP, the place where the IP being used by the licensee is used in determining whether or not the royalty income is subject to Hong Kong Profits Tax. In other words, royalty income derived from the licensee for the use of IP in Hong Kong is taxable while royalty income derived from the licensee for the use of IP overseas is not taxable.
- The IP is not owned by the Hong Kong resident
If only the licence to use the IP is obtained from its owner by the Hong Kong resident which then sub-licenses the IP to another party outside Hong Kong, the place of acquiring and granting the license is taken in determining the source of the royalty income. In other words, if both the acquisition of the licence to use the IP and granting of the sub-licence are in Hong Kong, the royalties derived from sub-licensing the IP is sourced from Hong Kong and subject to Profits Tax.
Royalty Income Received by a Non-Hong Kong resident…
For royalties from Hong Kong received by or accrued to a non-Hong Kong resident not carrying on business in Hong Kong, the IRD follows Section 15(1)(a), (b) and (ba) of the IRO instead of Section 14 of the IRO in charging the non-Hong Kong resident for such royalty income. The royalties, not otherwise chargeable to Profits Tax, shall be deemed to be receipts arising or derived from Hong Kong from a trade, profession or business carried in Hong Kong and the assessable profit of the royalty income is deemed to be 30% of the gross receipts (the percentage would be changed due to double tax agreement / arrangement entered into between Hong Kong and the respective country of the non-Hong Kong resident as tax resident). However, if the payer and recipient of the royalty income are associated and the IP was once owned in Hong Kong, the full amount of the royalties is deemed to be the assessable profit.
Should you require further details or assistance on the above, please contact us at
tax@zetland.biz.
所得税について、領土内取得課税主義（Territorial Source Principle）を取っている香港では、知的財産対するロイヤルティ収入への課税は、香港居住者と非居住者の間において異なる課税方式を取っています。
一般的に、知的財産（IP）とは以下の無形資産を指します：
- 商標権
- 特許
- 著作権
- 登録意匠
- 企業秘密
- 集積回路のデザイン保護
- 植物品種保護
ロイヤルティ所得の源泉に対するガイダンスの原理は基本、「収益をどのように、そしてどこであげたか」にかかります。
香港居住者がロイヤルティ収入を受け取った場合…
- 知的財産が香港居住者によって開発・作成された場合
知的財産が開発された労力と経費が香港で発生したと見なされるため、ロイヤルティ収入の源泉はその知的財産が開発された場所によって決定されます。知的財産の使用場所はロイヤリティ収入の源泉とは無関係になります。この場合において、知的財産のライセンス料として発生するロイヤリティ収入の全額が香港にて所得税の対象となります。
- 知的財産を香港居住者が購入した場合
もし、香港居住者が知的財産の所有権を取得した場合、どこでその知的財産が使用されたかが香港にて課税対象となるの基準となります。香港にて使用された場合は香港での所得税対象となり、香港外で使用された場合には香港では所得税の対象とはなりません。
- 知的財産の所有者が香港居住者でない場合
知的財産の使用権を非居住者のオーナーから香港居住者が取得した場合において、そしてそれを香港外にサブライセンス（使用再許諾契約）した場合において、どこで使用再許諾契約が締結されたかが問われます。つまり、香港にて締結された場合は香港にて所得税の課税対象となります。
香港非居住者がロイヤルティ収入を受け取った場合…
香港非居住者が香港からロイヤルティ収入を受け取る場合、その非居住者が香港にて事業を行っていない場合において香港税務条例のSection 15(1)(a),(b)に従い、その使用料対価の30%が課税されます（実際の税率は租税条約など他の条件で変わります）。ただし一定の関連者が支払うロイヤルティについて知的財産が香港で保有されていた事実があると認められる場合においては、ロイヤルティの全額が課税対象となります。
ゼットランドでは香港を拠点に、法人設立から会計・税務サービスまでを一環して提供しています。お問い合わせは日本語で
intray@zetland.biz まで
