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How to determine whether the profits of a Hong Kong company belong to offshore business?

Released Date: Nov 02,2021 Article Source: HUANZE

In order to reasonably avoid unreasonable tax expenditure and save the tax cost of the enterprise, we should have a certain understanding of the operation mode of the company when doing the audit and tax declaration of the company in Hong Kong.

Be doingHong Kong corporate auditIn order to reasonably avoid unreasonable tax expenditure and save the tax cost of enterprises, a certain understanding of the company's operation mode when filing tax returns can be obtained.

Everyone who sets up a company in Hong Kong knows that Hong Kong's tax policy is very favorable. Only the onshore profits need to pay profit tax in Hong Kong, while the offshore profits do not need to pay profit tax in Hong Kong.

The standard to judge the onshore profit or offshore profit is whether the Hong Kong company occupies Hong Kong resources in the actual operation.

For example, whether the procurement of the company's goods is related to Hong Kong, whether the transportation is related to Hong Kong, and whether the source of income is related to Hong Kong. Therefore, I must have a good understanding of my own operation mode when I am operating in Hong Kong. Even if some of them are related to Hong Kong, if the onshore part and the offshore part can be reasonably divided in the operation, the profits generated by the offshore part can be exempted from the acquisition tax in Hong Kong.

Therefore, it is very important for enterprises to know their own business model and have a clear financial management system when operating.

How to determine whether the profits of a Hong Kong company belong to offshore business?

CycloseThe company is committed to providing domestic and foreign customers with corporate audit, tax declaration, registration, annual inspection, tax planning and other services in Hong Kong, Singapore, Dubai and other regions. Efficient, rigorous, intimate service has been favored by many private enterprises, listed companies and large state-owned enterprises.

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