I have a HK company but all business is carried out not in HK. Should I pay tax in HK ?
              Home    |    About    |    Foreign company registers    |    Accounting and tax agency    |    Hong Kong company registers    |    Shenzhen company registers    |    
              Overseas company registers    |    H.K. trademark agency    |    Business personal finance loans    |    Payroll, social security registration bid
Notice
 中文简体 | 中文繁体 | English Keyword: Search Way:
 News More...
 
 Answer To Questions More...
 
 ·How to apply for residence permit
 ·Apply for a working(Z)visa in shenzhen?
 · ShenZhen Taxation & Fees
 ·Which Signs shall not be Registered as T
 ·Which Signs shall not be Used as Tradema
 ·Which Signs can be Registered as Tradema
 ·Meet the Small-Biz-Friendly China
 ·Documents Required of Trademark Registra
 ·Why Register Trademark in China?
 ·How is VAT calculated
 ·What is the VAT rate in China
 ·What is the scope of the Chinese value-a
 ·What are the options for foreign enterpr
 ·What is an equity joint venture
 ·What is a cooperative joint venture
 On-Line Message More...
 
 Link
 
 ·SZ state tax bureau
 ·SZ bureau of trade and industry
 ·SZ administration for industry
 ·HK Inland revenue department
 ·HK Companies registry
 
 
I have a HK company but all business is carried out not in HK. Should I pay tax in HK ?
Author:xcd   Article source: xcdacc.cn  Hits:1190  Add time:2009-6-22  

       Basically Hong Kong charges tax on any profits "arising in and derived from Hong Kong". This sounds technical and difficult to understand. However, if you have such a clear cut situation of doing all your business out of Hong Kong, then very probably, the income is not subject to Hong Kong tax. You still have to prepare financial statement and auditing for all income as they're under the name of the company. But, in tax filing, you have to claim for tax exemption for those income and provide proof. The more obvious that there is no activity in Hong Kong relating to the earning of the income, the bigger the chance you'll have.

The consideration of tax exempt or not is on "totality of fact". No one single factor will dominate. Therefore, planning in advance is very important. Otherwise, you may have difficulty in getting enough proof to support the tax exempt claim. Those proof include:

1、the contract is not signed in Hong Kong;

2、the contract is not executed in Hong Kong;

3、goods is not supplied via Hong Kong;

4、business is conducted by staff outside of Hong Kong; etc.

Finally, we have to remind that tax exempt in Hong Kong means nothing when you're challenging by another country for tax chargeability. Advance tax planning is always advised to minimize overall tax.

You are welcome to discuss for a proper tax planning to minimize your tax liability in a legal way.

         Related Articles  
 
What are the options for foreign enterprises to establish a permanent presence in China
Why Register Trademark in China?
Shenzhen Xinchengda Financial Consultancy Co., Ltd is a specialized Business Registration agency certified by the Chinese business bureau.
Trademark Registration System
Exclusive Right to Use a Registered trademark
Means of Trademark Application
Which Signs can be Registered as Trademarks?
Who can Apply for Trademark Registration?
Which Signs shall not be Used as Trademarks?
Which Signs shall not be Registered as Trademarks?
Shenzhen XINCHENGDA Business
A Guide to the Shenzhen Wholly foreign owned enterprise
A Guide to the Shenzhen Representative Office (RO)
Service sector welcomes foreign investors
April sees record firm registrations
Innovation contest launched
City cracks down onfire code violations
Registration of new companies highest in April
American finds his own way of success
Police open blog for expatriates
Foreign firm registrations shrink 41% in 1st quarter
Apartment rents drop with falling demand
Deutsche Telekom to open Shenzhen office
CHINA'S FACTORY WORKERS GAIN RECOGNITION FOR GRIEVANCES
HongKong Corporate Formation
Shenzhen link ‘good business sense’
Application form for Incorporation of Hong Kong Limited Cmpany
Hongkong is a gateway to the world busniess
BVI Company Incorporation
Frequently Asked Questions (FAQs)
I have a HK company but all business is carried out not in HK. Should I pay tax in HK ?
Conflicting verdicts in ATM theft
GSK creates Chinese flu vaccine joint venture
Deregistration of a Defunct Solvent Private Company
A Company's Obligations after Registration
Filing of Annual Return by a Non-Hong Kong Company
BVI Incorporation
How to register a BVI Offshore Company
Bermuda Register Company
Tenant evicted with second contract
Incentives proposed for start-ups
Bar owner serves tipplers from near and far
HONG KONG OFFERS SOUND ADVICE
Tax-haven Jersey opens HK gateway
Concerning Establishment of Meetingand Exhibition Company on Foreign Businessman Investment
Approval and Registration of Foreign-funded Companies
Law of the PRC on Foreign-funded Enterprises
Documents for Applying for Foreign-capital enterprise
Measures for Liquidation of Enterprise with Foreign Investment
SHENZHEN Comparative Advantages
Apply for alcohol wholesale license
The chamber of commerce association (in Chinese and English)
Guidelines for Alien Employment in Shenzhen
An automobile joint venture has approved in ShenZhen
Guangdong commercial registration procedures streamlined
ShenZhen's Policy Advantages
RULES FOR THE IMPLEMENTATION OF THE LAW ON FOREIGN-CAPITAL ENTERPRISES
 
Download    |    On-line message    |    Case    |    Websitemap    |
Shenzhen business registration /company register /SZ Accounting & Tax service/86-755-83702077 All rights reserved 粤ICP备05044913号  
Tel:0755-83702077,83702525,83702505,83702506 MSN:LSH734@HOTMAIL.COM SKYPE:XCD-LAN
Fax:(+86) 0755-83702506 Email:LSH734@HOTMAIL.COMasklanlian@126.com
Add:28E, HaiXing Tower,shopping center ,NanShan Technology park ShenZhen 518057, GuanDong ,China (Metro:Line 1 ,ShenZhen University)