At present, many domestic enterprises or individuals choose to registerHong Kong companyTo do international business, in the process of operation, sometimes involves the change of equity. For example, the Hong Kong company is the grandson company of the domestic group company. According to the unified arrangement of the group, the level of the Hong Kong company needs to be upgraded by one level, that is, it needs to be changed into a subsidiary of the group company, so the secondary company needs to hold the companyHong Kong companyAll of the shares are transferred to the next group company. Does the process of conversion need to pay tax?

According to the law of Hong Kong,Hong Kong companyThe stamp duty shall be paid on the basis of the net assets of the Hong Kong company at the time of the share transfer in a proportion of 2.6 ‰. If the net assets of the Hong Kong company are negative, the stamp duty shall be paid on the basis of the registered capital of the Hong Kong company. If the net assets of the Hong Kong company are high, in order to reduce the stamp duty, the Hong Kong company can choose to pay dividends to the parent company, reduce the net assets of the Hong Kong company through dividends, and then go through the share transfer procedures, so as to reduce the net assets, the stamp duty to be paid correspondingly. But after the dividend,Hong Kong companyAn updated balance sheet should be made and submitted to the Hong Kong Inland Revenue Department at the time of the conversion.

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