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Hong Kong Offshore Income General Requirements

Update Date:2015-12-17 9:32:43 Source:Tannet (Malaysia) Sdn Bhd Views:787

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Under the Hong Kong Inland Revenue Ordinance “Hong Kong adopts territorial basis for taxing profits derived from a trade, professional, or business carried on in Hong Kong. Profits Tax is only charged on profits which arise in or are derived from Hong Kong “.  In simple terms this means that a person who carries on a business in Hong Kong but derives profits from another place is not required to pay tax in Hong Kong on those profits.

Below are the Hong Kong offshore Income general requirements

- The Company has no office in Hong Kong

- No employee is in Hong Kong.

- The delivery of the goods are not passed through Hong Kong

- No goods are stored in Hong Kong

- The company has no bank loan in Hong Kong

- Suppliers and customers are foreign companies

- Contract place must be outside Hong Kong

- The sales details must be matched with purchase details

- Payments and collections details are clear and can be traced

- It is advisable for directors not to visit Hong Kong so often.


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