Hong Kong adopts territorial source tax system, whereby only income arising in or derived from a trade, profession or business carrying on in Hong Kong is subject to Hong Kong profits tax. In other words, a company incorporated in Hong Kong is potentially exposed to Hong Kong profits tax but it can lodge an offshore non-taxable claim for its offshore-sourced profits. On the other hand, a company incorporated outside of Hong Kong and which has carried on business in Hong Kong and earns Hong Kong-sourced profits is rather likely to have the tax reporting obligations in Hong Kong.
Our Hong Kong tax consultant team assists our clients in managing their (inter)national tax exposure. We can provide comments and suggestions on how to strengthen a proper offshore arrangement. Moreover, our Hong Kong tax consultant team also assists clients in complying with the relevant local tax rules and regulations in Hong Kong. In summary:
- Profits tax return filing
- Handling profits tax enquiries from the tax authorities
- Lodging objections against the profits tax assessments issued by the tax authorities
- Lodging application for holding over the professional tax charged by the tax authorities
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Tax Consequences on Termination Payments18 May 2020
Introduction Due to the COVID-19 pandemic, many industries, such as aviation, tourism, hotel, hospitality, retail and catering, have been severely impacted. As a result, various employees, such as pilots and salesmen, have been dismissed by their employers. Some of those employees may be entitled to termination/redundancy/severance packages from their employers, such as a reward for… read more
Economic Substance Legislation on the British Virgin Islands13 May 2020
Introduction A number of investors worldwide, including Hong Kong and Mainland China, maintain entities on the British Virgin Islands (“BVI”) for various purposes, such as acting as a vehicle to hold share investments and/or intellectual properties, or to engage in trading, service and/or fund management business. Please note that the BVI introduced the Economic Substance… read more
Which Banking Solution is Suitable?7 May 2020
With the increasing reliance on financial technology (often shortened to fintech), traditional banks are no longer the only option for opening a bank account, instead, thanks to the developments in fintech, people now can open bank account with a neobank. There are two types of neobank and they can be classified into (i) companies that… read more
Tax Impacts of the COVID-1924 April 2020
Introduction COVID-19 has, affected most, if not all, people in the world. Due to worldwide strict quarantine measurements and travel restrictions, people are being banned or discouraged from entering/leaving countries and consequently are required by (local) governments and/or their employers to work from home or even from different countries. As a result, for many, the… read more