AsiaBS
Why Hong Kong
Company Formation
such as BVI, Samoa etc.
Company Parking
Service in Hong Kong
Service in China
ABOUT TRUST ONLINE |
Why Hong Kong?
Why Hong Kong company?
Why Hong Kong company?
Lower withholding tax in china for dividend
Background
- France company (F Ltd) 100% own a subsidiary WFOE (C Ltd) in China;
- C Ltd provide consulting service to China based business;
- Dividend by C Ltd to mother company F Ltd is taxable in China;
- The withholding tax rate is 10% for a France company.
- France company (F Ltd) setup a Hong Kong (H Ltd);
- H Ltd 100% own a subsidiary WFOE (C Ltd) in China;
- C Ltd provide consulting service to China based business;
- Dividend by C Ltd to Hong Kong mother company H Ltd is taxable in China;
- The withholding tax rate is 5% for a Hong Kong company.
- Dividend income is non-taxable in Hong Kong.
- This withholding tax rate in China is varies and depends on country or region.
- Egypt company is 8%;
- US company, Japan company is 10%;
- Hong Kong company is 5%.
