Before analysing our topic this week. We need to clarify the meaning of offshore company in Hong Kong. Offshore company is registered in “Tax Heaven” which means the foreigners are allowed to form a company in those nations according to International Business Companies Ordinance. Basically, the entrepreneur could enjoy many benefits such as tax-free and convenience compliances for business.
When an offshore company established under international business company, the company status automatically became as an offshore company. You may ask that could an offshore status of a local company enjoy the tax exemption? According to HK tax compliance, these kinds of companies will be investigated your company’s major profit source by HK Inland Revenue Department (IRD). IRD will release a tax exemption to an offshore company if they adjudge your income is majorly from overseas. Otherwise, your company need to pay HK profit tax.
We received many enquiries about how to qualify for the offshore tax exemption. Let’s review the IRD’s criteria:
- Clients are not located in HK
- No physical office, storage staff and services in HK
- How do the contracts deal, negotiate and implement
Of course, there are lots of evaluation criteria, we recommend you consult professional advice from an experienced accountant/services provider before the tax season is coming.
KPC Business Centre has 12 years of experiences in providing outstanding accounting & audit services. Looking for a professional accounting consultant? Please feel free to drop us an email at firstname.lastname@example.org / Whatsapp us +852 9168 9205 anytime.
尖沙咀商務中心擁有12年的經驗提供專業的會計和審計服務。 尋找專業的會計顧問？ 請隨時通過sales@kpc-hk.com / Whatsapp給我們+852 9168 9205。