Hong Kong adopts a territorial source principle of taxation. Only profits which have a source in Hong Kong are taxable here.
Profits sourced elsewhere are not subject to Hong Kong Profits Tax. Offshore income claim is not automatic. It needs to be applied.
If your business activity is not within and not related to Hong Kong. You can apply Tax Exemption and it can be done by 2 ways :
Sample case : No tax in Hong Kong - Offshore operation tax exemption
Offshore income claim is not automatic. It needs to be applied. It can be done by 2 ways :
|Item 1 :||Financial Statements|
|Item 2 :||Auditor’s Report|
|Item 3 :||Tax computation|
|Item 4 :||Offshore operation tax exemption application|
When tax exemption application is required, Item 4 is required as well.
|Item 1 :||All income (onshore and offshore) of the taxpayer company should be reported.|
|Item 2 :||Statutory audit is required for every limited companies incorporated in Hong Kong;|
|Item 3 :||Tax payable needs to be calculated according to tax rules in HK;|
|Item 4 :||At least below 2 document sets are included :|