To facilitate the accurate interpretation and implementation of the
Comprehensive Arrangement by both Sides, definitions of some of its key
terms have been included in Article 3.
The term “person” has been defined widely in the Comprehensive
Arrangement to include an individual, a company, a trust, a partnership and any
other body of persons.
The term “enterprise” applies to the carrying on of business activities
of any form. services and “enterprise of
The term “business” includes the performance of other activities of an independent character. One Side” and “enterprise of the Other Side” mean
professional The terms respectively
“an enterprise carried on by a resident on by a resident of the Other Side”.
of One Side”, and “an enterprise carried An enterprise carried on by a resident
includes an enterprise carried on by a resident
resident partnership, or a resident body of persons.
Paragraph 3 of Article 3 expressly states that as regards the
application of the Comprehensive Arrangement by One Side (e.g. tax is imposed in accordance with the Comprehensive Arrangement), any term not defined therein shall, unless the context otherwise requires, have the meaning which it has at the time of the application under the laws of that Side
concerning the relevant taxes.
In view of the differences between the taxation systems in the
Mainland and Hong Kong, both Sides define the term “resident of One Side”