Profits Tax
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.
We assist our clients in managing their (inter)national tax exposure. We can provide comments and suggestions on how to strengthen a proper offshore arrangement. Our tax advisors also assist 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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24 January 2020Global Mobility Issues from a Corporate & Income Tax Perspective
7 January 2020Introduction Global mobility has allowed more and more companies to request their personnel to carry out work duties outside the companies’ home tax jurisdiction. In the past, most working arrangements abroad were rather permanent, nowadays jobs are also performed on an assignment/secondment basis or on a commuter basis or even as a combination of these… read more
Enjoyment of Tax Benefits Granted Under Mainland China Double Tax Treaties
28 August 2019Introduction Mainland China has entered into double tax treaties/arrangements (“DTAs”) with more than 100 tax jurisdictions including Hong Kong, the Netherlands and several European countries. Apart from preventing potential double taxation by both Mainland China and its tax treaty partners, Mainland China DTAs in general offer favourable withholding tax rates on dividends, interests and royalties… read more
Hong Kong Government’s New Multi-Billion Dollar Relief Measures
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