Offshore claim, Offshore claim by Hong Kong company

Hong Kong corporate services

Offshore claim

If a Hong Kong company shows in its audit report that the profits of the company in the audit year were earned outside Hong Kong (overseas profits), the Hong Kong Inland Revenue Department will have them80%About the probability of sending a letter to inform your company to defend, the process is also called offshore claim.

How to judge overseas profits

There are no employees or office leases in Hong Kong
The partners and customers shall not be local enterprises or individuals in Hong Kong
No contact with customers through Hong Kong resources, such as Hong Kong exhibitions, telephone and fax, goods did not go through Hong Kong
Latest annual return of Hong Kong company
No local contracts signed in Hong Kong, etc

In the process of Hong Kong company's tax declaration, Huanze Accountant will determine which way to declare tax according to the specific situation of Hong Kong company, depending on whether the client's Hong Kong company operates locally or overseas. This can not only truly reflect your company's financial situation, but also facilitate the company's future borrowing, financing, bidding.

What is the impact of failing to answer or failing to make an offshore claim after receiving an Inland Revenue Department questionnaire?

1Pay taxesThe Inland Revenue Department will assess the tax according to the turnover of the Hong Kong company in the current year and the industry regulations, and require the tax to be paid within the time limit.
2Heavy fineOne overdue fine1200, second overdue fine3000Get up.
3Account freezingMandatory withholding of tax on bank accounts/Freeze.

Offshore claim HUANZE will do it for you with practical experience

Differentiated reserveIn the audit, we will let the client distinguish between onshore and offshore in advance, and do the basic work.
Archive managementWe will keep all the information of the client's Hong Kong company on file to prevent the loss of information caused by staff turnover within the client's company.
Data reviewDuring the offshore claim process, we will assist the client in preparing the documents and submit them to the Inland Revenue Department after verification.
High success rateThe success rate of our clients is very high.

Documents required for offshore claims

Probably in the offshore claims questionnaire12-32A question asking shareholders and employees about the year5-10The details of the largest trade, so the process and documents of each trade need to be kept complete

1Bank statement; 2Expenditure documents (i.e., a receipt or invoice issued by the payee after you have paid the money) 3Invoice documents (i.e., invoices issued to the payer after you have received the payment), if the payer does not need, should also be invoiced as a record; 4Keep records of the way of communicating with customers,Such asE-MAIL; 5, employee employment contract, etc.; 6Other documents required by the tax bureau.

Handling process

The first step Sign a commission agreement
The second step pay70%Defense fee of offshore claim
The third step The customer provides the information set out in the letter
Step four The CPA writes a defense according to the information
Step five Submit to the tax bureau
Step 6 The Inland Revenue Department has finally determined that no tax is payable in the year of offshore claim
Step seven Pay the balance after successful offshore claim30%Defense fee of offshore claim

Service case

2016At the end of the year, the client received a complaint from the Inland Revenue Department2012/13-2014/15The annual offshore questionnaire, faced with a huge capital potential penalty problem. Due to the long time interval of the client and the staff changes within the company for many times, a lot of information has not been fully retained. However, since the establishment, maintenance, accounting and tax declaration of the client company are all handled by our company, we have helped the client to file all the information of the company. Finally, we have gone through this process3by5At the second defense, the offshore claim was successful.