IRD explained how it would interpret the law and its assessing practice relating to individual tax issues in the minutes of its 2024 annual meeting with the HKICPA

• including (i) a tax assessment on share awards could be revised under a late objection if the awards were subsequently clawed back;
  
  
• (ii) where an individual rendered services in Hong Kong under an employment, whether and how much of the leave pay of the individual was attributable to their services rendered inside or outside Hong Kong would be fact specific;
  
  
• (iii) rents paid under the tenancy of a serviced apartment would qualify for the domestic rents expense deduction if the tenancy was a stamped lease agreement but not a license agreement that was not chargeable to stamp duty in Hong Kong; and
  
  
• (iv) tax residence of Hong Kong of an individual under a comprehensive avoidance of double taxation agreements or arrangement (CDTA) could be determined based on either (a) the ordinary residence test or (b) the 180/300-day physical presence test.

While the Inland Revenue Department’s above explanation provides some general guidance on how the tax provisions would be interpreted and the assessing practice would work, their application would still be fact specific. Clients who have any questions on the above should contact their tax executive.