AsiaBS
Success Story
Company Formation
such as BVI, Samoa etc.
Company Parking
Service in Hong Kong
Service in China
Using Hong Kong Company
Using Hong Kong HSBC bank account
about Taxation
No tax in Hong Kong - Offshore operation tax exemption
about Transaction
about Trading
about China market
Using Hong Kong HSBC bank account
Lower tax rate in Hong Kong
Background
- Mr. A originally buying from China and selling to France using his own French company as the middle trading firm (F Ltd);
- Mr. A flies frequently to Hong Kong and China – to meet clients and suppliers;
- Trading profit of Euro 100,000 is subject to French tax rate – around 40% .
- Mr. A setup a Hong Kong company, H Ltd;
- H Ltd becomes the middle trading company – buying from China and selling to France;
- Goods still shipping directly from China to France;
- Selling and purchase at same price as before;
- Mr. A hires a staff in Hong Kong – to help handle the sales and purchase orders.
- Profit of Euro 100,000 will be profit of H Ltd;
- Hong Kong profits tax rate of 17% applies;
- There is saving of 23% in profits tax.
| Important : Overall Tax Position |
Mr. A still needs to fulfill personal income tax filing to French government – in order to assess overall tax saving scenario. |
