Recently, one of our clients has received the tax form of departure tax paid on behalf of Hong Kong Tax Bureau, and the audit report submitted by the client reflects the patent fee item, which is exactly the item of profit tax payable in Hong Kong. Since this company is a company outside Hong Kong, Hong Kong Tax Bureau can only require the payment of patent feeHong Kong companyFulfill the obligation of withholding and payment, so the tax table is issued to the Hong Kong company.

The customer communicated this tax matter with the American company that granted them the patent. The American company said that all the money we earned had been paid tax in the United States, and we could present our tax voucher in the United States to Hong Kong Tax Bureau to prove that we had paid tax. In response to the customer's questions, we called the assessor of the Hong Kong Tax Bureau many times and replied that Hong Kong and the United States have not signed an agreement to avoid double taxation, so the tax should be paid in Hong Kong. In addition, even if the agreement to avoid double taxation is signed, the tax should be offset in the United States after paying the tax in Hong Kong with the tax payment certificate, rather than using the US tax certificate to offset the tax payable in Hong Kong.

Therefore, the international principle of avoiding double taxation is to pay the tax in the tax jurisdiction and offset the tax back to the host country, so as to avoid double taxation of the same item by two countries.

CycloseThe company is committed to providing domestic and foreign customers with corporate audit, tax declaration, registration, annual inspection, tax planning and other services in Hong Kong, Singapore, Dubai and other regions. Efficient, rigorous, intimate service has been favored by many private enterprises, listed companies and large state-owned enterprises.