Many mainland Chinese companies are based in Hong KongRegistered Hong Kong company, some use Hong Kong companies for international trade, some use Hong Kong companies for brand promotion, and some use Hong Kong companies for cross-border e-commerce. While doing this, some Hong Kong companies also invest in stocks, or invest in other subsidiaries, some of which are used to buyBTCurrency. Are these investments subject to Hong Kong profits tax when they earn income?

Under normal circumstances, investment income of Hong Kong companies is not subject to Hong Kong's profits tax, because Hong Kong does not levy profits tax on capital gains. But if Hong Kong companies are just used to hype stocks, or hypeBTCurrency, which is bought and sold frequently and has no other substantive business such as international trade. The Hong Kong Inland Revenue Department will consider it as a profit from speculation and will be subject to profits tax. Of course, if these operations are all taking place outside Hong Kong and have nothing to do with Hong Kong, for example, the stock speculation is in the United States, the operation personnel are outside Hong Kong, eligible for offshore profit, can apply for profits tax exemption, exemption is successful, there is no need to pay profits tax. 

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