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──Oct 01 , 2021How do Hong Kong companies differentiate between onshore and offshore trade?

Be doingHong Kong corporate auditWhen filing tax returns, customers often ask whether Hong Kong companies need to pay profits tax in Hong Kong. About this problem, make a solution.

First of all, whether a Hong Kong company needs to pay profits tax in Hong Kong mainly depends on whether the trade it engages in is onshore trade. If it is onshore trade, it needs to pay profits tax in Hong Kong on the company's profits in the current year; if it is offshore trade, it does not need to pay profits tax in Hong Kong.

Therefore, before determining whether to pay profits tax, it is necessary to know clearly the business model of the Hong Kong company, whether the trade is related to Hong Kong, and whether the resources of Hong Kong are temporarily used.

This judgment can be made from many aspects, such as whether income, cost, logistics, personnel wages and so on are related to Hong Kong. If they are not, it can be judged as offshore trade. If they are partially related, it can be determined whether onshore trade and offshore trade can be reasonably divided. Without reasonable division, all the onshore trade can only be counted, and the profit part shall be subject to profits tax in Hong Kong.

How do Hong Kong companies differentiate between onshore and offshore trade?

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.

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