retained for permanent use as opposed to being for temporary stays. If the individual has a permanent home in both Sides concurrently, it is necessary to ascertain with which of the two Sides his personal and economic relations are closer. Regard will be had to his family and social relations; his occupations;
his political, from which
cultural and other activities; his place of business; and the place
examined as a whole, but it is nevertheless obvious that considerations on the personal acts of the individual must receive special attention.
Where a company is incorporated in Hong Kong, or if incorporated
outside Hong Kong is normally managed or controlled in Hong Kong, it will be considered to be a resident of Hong Kong under paragraph 1(2)(iii) of Article 4. A company incorporated in Hong Kong includes a company that is incorporated as a legal entity in accordance with the Companies Ordinance
(Cap. 32) of Hong Kong.
The concept of “normally managed or controlled in Hong Kong”, as
compared to that of “central management and control” established in common law, has a broader meaning as it does not require that both management and control be exercised in Hong Kong. “Management”, in this context, refers to management of daily business operations, or implementation of the decisions made by top management, etc. “Control”, on the other hand, refers to control of the whole business at the top level, including formulating the central policy of the business, making strategic policies of the company, choosing business financing, evaluating business performance, etc. The board of directors usually exercises “control”. In other words, if the business of the company is normally managed or controlled in Hong Kong, including the management of
top management, or the making of top-level policies, company will be considered to be a resident of
in Hong Kong, the
“management” or “control” of a company may, of course, be conducted more than one place. However, so long as a company is normally managed
controlled in Hong Kong, If the Hong Kong branch
it will be considered of an overseas bank
to be a resident of Hong Kong. is managed in Hong Kong, the