IX. Advance Rulings (to obtain early decisions on uncertain tax matters)

A taxpayer may apply to the Commissioner of Inland Revenue, subject to the payment of a fee and certain regulations, for a ruling on how any provision of the Inland Revenue Ordinance applies to him/her or the arrangement specified in the application. A ruling will only be given for a seriously contemplated transaction with full particulars set out. The ruling is binding on the Commissioner and can be relied upon for the subsequent tax assessment. However, the ruling on any specific case should not be relied upon for other cases. Rulings are now published on the IRD's website for general reference.

According to Part I of Schedule 10 of the Inland Revenue Ordinance, however, advance ruling will NOT be provided in certain cases. For example, the matter on which a ruling is sought involves the imposition or remission of a penalty, whether a tax return or other information provided by a taxpayer is correct or not, etc.

  1. How is the advance ruling procedure different from an objection against a tax assessment?
  2. How much should I pay for an advance ruling?
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