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
No tax in Hong Kong - Offshore operation tax exemption - Service providing business
Background
- Mr. A is a French who knows many businessmen doing jewellery business all over the world;
- These businessmen will pay Mr. A service fee every time when Mr. A refers them the customers;
- Mr. A originally using his own French company to act as the middle man to link up these businessmen with the customers he found;
- Mr. A controls the business remotely – no need to maintain operation base in France;
- Profit of Euro 50,000 is subject to French tax rate - can be as high as 40%.
- Mr. A setup a Hong Kong company, H Ltd;
- H Ltd becomes the middle company – to link up customers he found with the jewellery businessmen all over the world;
- Referral service is delivered to the jewellery businessmen like before;
- Location of operation - Mr. A still operating the business - without maintaining operating office in Hong Kong and France.
- Profit of Euro 50,000 will be profit of H Ltd;
- As H Ltd maintains only register address in Hong Kong, but not operating office. And also fulfilling offshore operation test, Hong Kong tax department (Inland Revenue Department) (IRD) approves the "non-HK source" application;
- There is saving of 40% 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. |
| Important : Offshore operation tax exemption in HK |
H Ltd should fulfill operation test, which include below :
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