In Hong Kong, profits tax is levied according to the territorial principle, which means that only the trade that takes place has a relationship with Hong Kong, that is, the resources of Hong Kong are occupied, and the profits generated are subject to profits tax in Hong Kong.

Many mainland companies have set up operations in Hong Kong, some purely offshore, some purely onshore, some both onshore and offshore. In view of these situations in the Hong Kong audit, we have to analyze the specific problems.

If it is purely onshore trade, the profits generated must be subject to profits tax in Hong Kong. If it is purely offshore trade, the profits generated in Hong Kong do not need to be subject to profits tax in Hong Kong. If you have both onshore and offshore, you have to separate onshore and offshore, and in Hong Kong you have to divide it according to the actual operation of the company.

Therefore, to conduct Hong Kong audit, it is necessary to find a professional institution to analyze the specific situation of the company. If it is both offshore and onshore trade, the distinction should be made. For the onshore part, the payment should be made; for the offshore part, the company can enjoy Hong Kong's tax policy of no tax on offshore profits, which can greatly reduce the company's profits tax. Reduce the company's operating costs.

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