US Inc. is carrying on business in the US. It is considering to sell goods in Hong Kong through consignment arrangement with certain department stores in Hong Kong. Goods are shipped to these stores which are responsible for handling the sales. Sales revenue will be remitted by these stores to US Inc. on monthly basis after netting of sales commission of 5% based on sales value.

Required: Based on the Hong Kong Inland Revenue Ordinance and prevailing practice, advise whether US Inc. is subject to Hong Kong profits tax; and if so, how the tax is calculated and collected.