Hong Kong companyMany clients are well aware that the Hong Kong Inland Revenue Department does not pay profits tax in Hong Kong on profits derived outside Hong Kong (often referred to as offshore profits). When doing the audit, you can take the initiative to declare the offshore profit of this year. If the profit of this year, the auditor will not calculate the tax. When the Hong Kong tax office sends a letter to inquire about the operation of the company, thenHong Kong companyThe answer should be based on the facts and supporting documents. If the Hong Kong Inland Revenue Department determines from the answered questions that the company's profits are actually derived from outside Hong Kong, then no tax will be paid on the offshore profits for the current year. This is only necessary if the profits are deemed to be derived from Hong Kong Profits are taxed.

Therefore, the distinction between offshore profits becomes particularly important, and a preliminary distinction is generally made through the registered address of the supplier and the customer on the contract or invoice. If it isHong Kong company, the profits under the trade are generally considered to have originated in Hong Kong unless the customer has sufficient evidence to show that they did not. In addition, a comprehensive judgment will be made based on various factors such as whether the company's directors and shareholders are Hong Kong people, whether it rents office space in Hong Kong, whether it conducts financing in local banks in Hong Kong, and whether it knows customers through participating in exhibitions in Hong Kong.

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.