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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Enjoyment of Tax Benefits Granted Under Mainland China Double Tax Treaties28 August 2019
Introduction 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 Measures26 August 2019
On 15 August 2019, the Financial Secretary of Hong Kong announced a number of relief measures (worth of approximately HKD 19.1 billion) to support businesses, safeguard jobs and relieve people’s financial burdens. The relief measures relevant for enterprises as well as middle-class and upper-class individuals include the following: (i) Tax reduction In addition to the… read more
How Healthy Is Your Company?15 July 2019
Introduction For the benefits of our own health, many of us conduct on a regular basis a body check, which potentially enables us to ‘spot’ at an early stage any illnesses we might need to face soon or later. Nowadays, such ‘health-check’ is equally important for most businesses and/or companies in the world as they… read more
Certificate of Resident Status – Is Your Company Able To Obtain It?23 May 2019
Introduction In order to be entitled to certain tax benefits granted under double taxation agreements (“DTAs”) such as reduction of withholding tax rates on dividend income, interest income and royalty income, it is generally required for recipients of the said income to prove that, amongst others, they are the beneficial owners of the income concerned… read more