Question 2: any Rules regarding the definition of tax residence under OECD, i.e., under CRS?
1st refer place: please refer to following link:
We extract the portion for HK company:
Jurisdiction’s name: Hong Kong, China
Section II – Criteria for Entities to be considered a tax resident
An entity is regarded as a tax resident of Hong Kong, China if –
- (a) (where the entity is a company) the company is incorporated in Hong Kong, China; or if the company is incorporated outside Hong Kong, China, being normally managed or controlled in Hong Kong, China; or
- (b) (where the entity is not a company) the entity is constituted under the laws of Hong Kong, China; or if the entity is constituted outside Hong Kong, China, being normally managed or controlled in Hong Kong, China.
The legal concept “normally managed or controlled” does not require that both management and control be exercised in Hong Kong, China. “Management” refers to the management of daily business operations, or implementation of the decisions made by top management, etc. “Control” refers to the control of the whole business at the top level, including formulating the central policy of the business, making strategic policies of the entity, choosing business financing, evaluating business performance, etc.
2nd refer place: please refer to following link:
definition provided here is: “Tax residents of reportable jurisdictions” refer to those who are liable to tax by reason of residence in the jurisdictions.