In view of the vague definition of the word "resident", are there any other indicators of how an individual is deemed to be a "resident" of Hong Kong for tax purposes?
Currently this situation is at best speculative. The IRD has said that it will issue a practice notice shortly that will explain this further and presumably this will first be discussed with the State Administration of Taxation in China. The IRD has hinted that it will refer to statutory definitions. We can therefore refer to the definition of "resident" in Hong Kong's Inland Revenue Ordinance. A "permanent resident" is defined as "an individual who ordinarily resides in Hong Kong" and a "temporary resident" is an individual who stays in Hong Kong for more than 180 days during the tax year or 300 days during two consecutive tax years. If a foreign passport holder has a home and family in Hong Kong and only goes to the Mainland to work he would probably be regarded as a resident of Hong Kong. On the other hand, it is possible that a Hong Kong professional who spends a long time in China may lose his "residency" in Hong Kong for tax purposes.
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