When a Hong Kong company transfers shares to a mainland Chinese company, the Chinese company withholds corporate income tax. If you want to enjoy the agreement treatment of non-resident taxpayers, you need to provide tax resident status certificate.
Hong Kong companyWhen the shares are transferred to the Chinese mainland enterprise, the Chinese mainland enterprise will withhold and pay the enterprise income tax. If you want to enjoy the agreement treatment of non-resident taxpayers, you need to provide tax resident status certificate. If the company is not incorporated in Hong Kong, it is a Hong Kong tax resident. So how to deal with Hong Kong tax resident?
To apply for Hong Kong tax resident, the first need is theHong Kong companyIs physically based in Hong Kong and has employees in Hong Kong (supporting documents such as MPF, Labour insurance, etc.); Secondly, the company's decision-making power and important information are stored in the Hong Kong office. Finally, the top management of the company is based in Hong Kong and shouldHong Kong publicDepartment ofIn Hong Kong, there is tax payment, etc., and the staff of Hong Kong Tax Bureau will also visit the applicant's Hong Kong office from time to time to check and verify the company's on-the-spot operation. If these conditions are met, then the applicant can apply for the Hong Kong tax resident certificate. Thus enjoy the mainland and Hong Kong to avoid double taxation of income tax treatment.
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