Chapter:	112	Title:	Inland Revenue Ordinance	Gazette Number:	E.R. 1 of 2012
Section:	20AA	Heading:	Persons not treated as agents	Version Date:	09/02/2012

(1) For the purposes of section 20A, the following persons are deemed not to be an agent of a non-resident person-

(a) where profits are chargeable to tax under this Part by reference to so much of any trade, profession or business as relates to transactions carried out through a broker and falling within subsection (2), the broker;
(b) where profits are chargeable to tax under this Part by reference to so much of any trade, profession or business as relates to transactions carried out through an approved investment adviser and falling within subsection (3), the approved investment adviser.

(a) at the time of the transaction, the broker was carrying on the business of a broker;
(b) the transaction was carried out by the broker for the non-resident person in the ordinary course of the business;
(c) the remuneration that the broker received for providing the services of a broker to the non-resident person for the transaction was at a rate not less than the one customary for the class of business;
(d) the non-resident person does not fall (apart from this paragraph) to be treated as having the broker as his agent in relation to any other profits not included in the taxable profits under this subsection or subsection (3) but chargeable to tax under this Part for the same year of assessment; and
(e) the broker was not an associate of the non-resident person during the year of assessment.

(a) (Repealed 32 of 1998 s. 14)
(b) at the time of the transaction, the approved investment adviser was carrying on the business of an approved investment adviser;
(c) the transaction was carried out by the approved investment adviser for the non-resident person in the ordinary course of the business;
(d) the remuneration that the approved investment adviser received for providing the services of an approved investment adviser to the non-resident person for the transaction was at a rate not less than the one customary for the class of business;
(e) the non-resident person does not fall (apart from this paragraph) to be treated as having the approved investment adviser as his agent in relation to any other profits not included in the taxable profits under this subsection or subsection (2) but chargeable to tax under this Part for the same year of assessment;
(f) the approved investment adviser was not an associate of the non-resident person during the year of assessment; and
(g) the approved investment adviser, when he acted for the non-resident person in the transaction, did so in an independent capacity.

(a) a corporation licensed to carry on a business in advising on securities or asset management under Part V of the Securities and Futures Ordinance (Cap 571); or
(b) an authorized financial institution registered for carrying on such a business under that Part, only to the extent that the institution carries on such a business; (Replaced 5 of 2002 s. 407)

(a) where the person is a natural person-
(i) a relative of the person;
(ii) a partner of the person and any relative of that partner;
(iii) a partnership in which the person is a partner;
(iv) any corporation controlled by the person, by a partner of the person or by a partnership in which the person is a partner;
(v) any director or principal officer of any such corporation as is referred to in subparagraph (iv);
(b) where the person is a corporation-
(i) any associated corporation;
(ii) any person who controls the corporation and any partner of such person, and, where either such person is a natural person, any relative of such person;
(iii) any director or principal officer of that corporation or of any associated corporation and any relative of any such director or officer;
(iv) any partner of the corporation and, where such partner is a natural person, any relative of such partner;
(c) where the person is a partnership-
(i) any partner of the partnership and where such partner is a partnership any partner of that partnership, any partner with the partnership in any other partnership and where such partner is a partnership any partner of that partnership and where any partner of, or with, or in any of the partnerships mentioned in this subparagraph is a natural person, any relative of such partner;
(ii) any corporation controlled by the partnership or by any partner thereof or, where such a partner is a natural person, any relative of such partner;
(iii) any corporation of which any partner is a director or principal officer;
(iv) any director or principal officer of a corporation referred to in subparagraph (ii);

(a) a corporation over which the person has control;
(b) a corporation which has control over such a person, being a corporation; or
(c) a corporation which is under the control of the same person, being a corporation;

(a) a corporation licensed to carry on a business in dealing in securities under Part V of the Securities and Futures Ordinance (Cap 571); or
(b) an authorized financial institution registered for carrying on such a business under that Part, only to the extent that the institution carries on such a business; (Replaced 5 of 2002 s. 407)

(a) by means of the holding of shares or the possession of voting power in or in relation to that or any other corporation; or
(b) by virtue of any powers conferred by the articles of association or other document regulating that or any other corporation, that the affairs of the first-mentioned corporation are conducted in accordance with the wishes of that person;

(a) a person employed by a corporation who, either alone or jointly with one or more other persons, is responsible under the immediate authority of the directors for the conduct of the business of the corporation; or
(b) a person so employed who, under the immediate authority of a director of the body corporate or a person to whom paragraph (a) applies, exercises managerial functions in respect of the body corporate;