Company accounting in Hong Kong, Hong KongcompanyAudit,Hong KongcompanyTax declarationWe all know that if the income is not derived from Hong Kong, then there is no need to pay profits tax in Hong Kong. However, it is not clear how to define the income is derived from Hong Kong. Today I will explain to you.

Taking a trading company as an example, the profit operation of a trading company needs to be judged comprehensively, such as whether it has business premises in Hong Kong, whether it employs personnel in Hong Kong, whether it attends the promotion meeting in Hong Kong, whether the directors are from Hong Kong and a series of factors. If none of the above. That will take a closer look at the operation of profits, where contracts are reached with customers and suppliers, and where contract terms are negotiated, formulated and enforced.

For example, for a trade profit of a trading company, from knowing suppliers, signing purchasing contracts and executing contracts, all the links are outside Hong Kong, to selling goods to customers, knowing customers, signing sales contracts and executing contracts are all outside Hong Kong, including goods transportation without entering Hong Kong customs, then the profit generated from this trade will be identified as originating outside Hong Kong. The profits generated from this trade would not be subject to Hong Kong profits tax.

Correct judgment of the source of income, in Hong Kong accounting, Hong Kong audit, Hong Kong tax declaration can reasonably reduce the cost of tax            

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