AsiaBS
Service in Hong Kong
Accounting Audit and Taxation
Tax Exemption
Company Formation
such as BVI, Samoa etc.
Company Parking
Service in Hong Kong
Service in China
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General Information
by Tax Filing
by Advance Ruling
by Tax Filing
by Advance Ruling
Process Offshore Operation Tax Exemption
Offshore income claim is not automatic. It needs to be applied.
It can be done by 2 ways :
It can be done by 2 ways :
- Advance Ruling
- Before you start the operation, write to HK tax department (IRD), describe your intended operation and request for "Advance Ruling";
- Example of advance ruling = [ Example ]
- The fee for this starts from around HK$ 60,000 ;
- Tax Filing
- 1 st filing request will normally issued by tax department around 18 months after company incorporation date;
- Usually the company has around 3 months to handle the filing;
- The period to cover is usually from incorporation date to 31/3 of next year;
- Therefore, the company can also start arranging the filing work - even the filing request is not issued yet.
- What documents are required for Tax Filing ?
| Item 1 : | Financial Statements; |
| Item 2 : | Auditor’s Report |
| Item 3 : | Tax computation |
| Item 4 : | Offshore operation tax exemption application |
For a company does not need to apply for tax exemption, only Item 1 , Item 2 and Item 3 are required to submit to Hong Kong tax department.
When tax exemption application is required, Item 4 is required as well.
In Item 1 , all income (onshore and offshore) of the taxpayer company should be reported.
In Item 2 , statutory audit is required for every limited companies incorporated in Hong Kong;
In Item 3 , tax payable needs to be calculated according to tax rules in HK;
In Item 4 , at least below 2 document sets are included :
- Organization chart (Company function structure) showing which function is performed offshore
- Walk-Through document example of a deal showing how an offshore income business is handled. (please select one of the largest in amount and typical);
If apply for tax exemption without giving sufficient information. Tax department will issue a letter asking for proof. [ Document Sample ]
