Tax Advisory and Support in Obtaining Hong Kong Certificate of Resident Status

What it is & why it matters
A CoR is the Inland Revenue Department (IRD)’s official confirmation that an applicant is a Hong Kong tax resident for a specified period and treaty partner, used to claim Double Taxation Agreement (DTA) benefits (e.g., reduced withholding tax). IRD issues CoRs only for jurisdictions where a DTA is in force/effective, and the certificate is period- and jurisdiction-specific.

Who typically qualifies

• Companies whose central management and control (CMC) is exercised in Hong Kong (facts IRD commonly examines include where directors and senior management are based, where board meetings occur, and whether there is office/staff/substance in Hong Kong).

• Individuals/others who are Hong Kong tax residents for treaty purposes.

Note: Even with a CoR, treaty benefits can still be denied by anti-abuse rules (e.g., PPT/LOB) or if the treaty is not yet effective for the period claimed.

Recent process update (useful context)
From mid-2023, IRD simplified CoR handling in certain cases (e.g., issuing CoRs without testing economic nexus at application stage). Taxpayers should still assess actual treaty entitlement against anti-abuse provisions.

How to apply (company or individual)

1. Confirm DTA coverage (treaty partner and effective dates).

2. Prepare evidence of HK residency/CMC (e.g., board minutes, management location, office/staff details, BR/CI). IRD may request further information.

3. Submit the application:

   • Online (eTAX) via the IRD / GovHK portals (taxpayers or appointed service agents).

   • Paper forms: e.g., IR1313 (companies/bodies of persons) and IR1314 (individuals).

4. Receive the CoR – IRD typically mails the certificate to the address provided (collection by appointment is also possible).

Practical notes

• A CoR generally serves as sufficient proof of HK residency for treaty purposes. IRD does not normally sign/stamp foreign DTA forms (exceptions: Austria, Belgium, Luxembourg forms).

• Maintain Hong Kong substance (governance, decision-making, records) to support both CoR applications and future treaty-benefit claims.

What the CoR lets you claim under the Mainland–Hong Kong DTA (when conditions are met):

• Lower PRC withholding on passive income. Typical treaty caps: dividends 5% (qualifying shareholding) or 10%, interest 10%, royalties 7%, and technical service fees 5%/7%. Actual access depends on “beneficial owner” status.

• Business profits / service fees taxed only in Hong Kong if the Hong Kong enterprise has no permanent establishment (PE) in the Mainland; otherwise the PRC may tax only the profits attributable to that PE.

• Employment income relief (for individuals): PRC tax can be exempt if all three Article 14 tests are met—≤183 days in any 12-month period, remuneration paid by a non-PRC employer, and not borne by a PRC PE.

• Capital gains: Generally taxed only in the seller’s place of residence except for gains from PRC real property and “property-rich” share disposals (≥50% value from PRC immovable property), which may be taxed in the PRC.

Important clarifications:

• Directors’ fees are not exempt in the PRC. Under Article 15, a HK resident’s fees for serving as a director of a PRC company may be taxed in the PRC (Hong Kong then gives double-tax relief by credit, not exemption).

• A CoR doesn’t guarantee treaty relief. The PRC still tests beneficial ownership (SAT Announcement 9) and uses a self-assessment/retain-for-inspection process (STA Announcement 35). In practice, taxpayers provide the HK CoR among the supporting documents.

Why it matters operationally:

• Mainland tax authorities expect a tax residency certificate from Hong Kong when you (or your payer/withholding agent) claim treaty rates; the CoR is the IRD’s standard certificate for that purpose.

A CoR may be issued by the IRD only for claiming DTA benefits and only if a DTA with the relevant jurisdiction is effective. In general, the following may apply:

• Individuals

  • Ordinarily resident in Hong Kong, or

  • Present in Hong Kong >180 days in a year of assessment, or >300 days over two consecutive years (one being the relevant year).

• Entities

  • Company/partnership/trust/body of persons incorporated or constituted in Hong Kong, or

  • Incorporated/constituted outside Hong Kong but managed or controlled in Hong Kong (i.e., central management/ control in Hong Kong).

  • Re-domiciled company (after completing the Companies Registry re-domiciliation and deregistration steps).

Important note: The IRD will not issue a CoR where no DTA exists with the relevant jurisdiction, or for non-DTA purposes.

Per the IRD’s application form notes, submit the completed form (IR1313A/IR1313B as applicable) together with the following supporting documents for the applicant type:

• Company (including re-domiciled)

  • Copy of Certificate of Incorporation; and, if applicable, Certificate of Change of Name.

  • For re-domiciled companies: copy of certificate of re-domiciliation and evidence of deregistration from the original place of incorporation; plus any change-of-name certificate.

• Partnership (excluding Limited Partnership Funds)

  • Certified true copy of the Partnership Agreement; and

  • Particulars of each partner for the calendar year(s) of claim: name, HKID / BR number, and address.

• Limited Partnership Fund (LPF)

  • Copy of Certificate of Registration; and, if applicable, Certificate of Change of Name.

• Trust

  • Certified true copy of the Trust Deed.

• Body of persons / organisation

  • Certified true copy of the Constitution / Constitutional Document.

Helpful notes

• If the same document was already filed in another CoR application, you may quote that application’s reference instead of re-submitting the copy.

Who must sign the form:

• Company: a director/secretary/manager; Partnership: the precedent (managing) partner; LPF: the general partner / authorised representative / investment manager; Trust: the trustee; Body of persons: the principal officer.

• Individuals: the applicant (individual) must sign.

• Companies: a director, company secretary, or manager must sign.

• Partnerships (excluding LPFs): the precedent (managing) partner must sign.

• Limited Partnership Funds (LPFs): the general partner, an authorised representative under the LPF Ordinance, or the investment manager must sign.

• Trusts: the trustee must sign.

• Organisations / bodies of persons: the principal officer must sign.

Where to submit

• Paper application: Send the completed form to Assessor (Tax Treaty), Tax Treaty Section, Inland Revenue Department, 17/F Inland Revenue Centre, 5 Concorde Road, Kai Tak, Kowloon, Hong Kong.

• Online option: You (or your appointed service agent) may also apply via eTAX / Tax Representative Portal (TRP).

Processing time

• The IRD’s target is to issue the CoR (or a decision letter) within 21 working days after receipt of a properly completed application. If further information is needed to establish Hong Kong tax residency, the assessing officer will contact the applicant to request additional documents within that timeframe.

Forms & practical notes

• Use the IRD’s CoR application forms (e.g., IR1313 for companies/partnerships/trusts/bodies of persons; IR1314 for individuals).

• Certificates are normally mailed to the address provided; in-person collection can be requested.