Application for Offshore Tax Exemption
The Hong Kong government does not impose profits tax on a company's profits outside Hong Kong, so it can apply for tax exemption on offshore income, and we have extensive experience in applying for tax exemption on offshore income.
Requirements for Offshore Tax Exemption
The profit-making activities of the business must be carried out outside Hong Kong. Taking the trading industry as an example, the following activities need to be carried out outside Hong Kong:
1. Sales and Marketing
2. Procurement
3. Inventory
4. Loans
Notes
It is worth noting that in recent years, the authorities have become more rigorous in the process of investigating companies' overseas taxes, so it is difficult to successfully apply for exemption. Our professional assistance can improve the success rate. Welcome to contact us for further enquiries.
Many customers think that after the offshore tax exemption is approved, the Company will have a "death-free gold medal" and will not have to pay taxes on all businesses it operates. In fact, the IRD will re-examine the Company's business every three or four years.
After many companies applied for offshore tax exemption, although they did not receive a tax bill that year, the application was actually not approved. Therefore, the applicant's company must ensure that it has sufficient liquidity to cope with the risk of not being approved and having to pay taxes. Please contact us for details.