Tax declaration, as a business entity, must bear responsibilities and obligations. Most countries and regions in the world have very strict requirements, and the procedures and content of tax declaration are fixed in the form of legal provisions, and Hong Kong is no exception. Below are the most common questions about Hong Kong companies’ tax returns compiled by our staff.
1. During the audit process, is it sufficient to provide copies of the purchase and sale documents?
Answer: Usually we require customers to provide original documents. However, if it is inconvenient, a copy or an electronic scan of the invoice will suffice.
2. Can I apply for offshore tax exemption when making calls to other Hong Kong companies?
Answer: According to the offshore determination conditions, usually Hong Kong companies are not allowed to trade with local Hong Kong companies. Otherwise, it will affect the results of offshore tax exemption. If part of your business is with Hong Kong and part of your business is offshore, you can also use one set of offshore accounts and one set of onshore accounts to file taxes. But in general, it still needs to be considered on a case-by-case basis. If the net profit is negative, is it unnecessary to apply for offshore tax exemption? Is it necessary to wait until the company's net profit is positive before applying for offshore tax exemption? Will it be troublesome if profits are always negative?
3. When a Hong Kong company pays to a personal account, what should you pay attention to?
Answer: Under normal circumstances, we do not recommend customers to operate if it is a non-trade item. It is of course possible to pay commissions to individuals under normal trade, but it is not recommended that customers transfer large amounts of money frequently to their personal accounts. The scope of salary tax
4, offshore tax exemption, the first few conditions are met, but sometimes when the container is transported for export, it may be transferred to Hong Kong. For example: Dalian to Spain, Dalian to Hong Kong and then to Barcelona. Does this satisfy the application for offshore tax exemption? Will all profits tax and salary tax be exempted?
Answer: Transferring to another port is generally no problem.
5. Can payments received from other individuals or entities abroad be regarded as investment funds from shareholders?
Answer: This situation is more complicated. The premise is whether the payment unit or individual is a shareholder of a Hong Kong company? It is recommended that you seek professional consultation from us before proceeding.
6. Which one is more suitable, offshore tax exemption or low-profit tax payment?
Answer: Normally, when applying for offshore tax exemption, there will be a letter of explanation from the tax bureau to be processed later, and the explanation requires the help of CPA, which also incurs a fee. If you are offshore, but your profits for that fiscal year are extremely small and the amount of tax paid is lower than the explained fee, you may consider applying for onshore tax filing while being offshore.
7. Do I need to pay the tax exemption explanation fee every year?
Answer: Usually we rely on the letter of explanation issued by the Inland Revenue Department, and Hong Kong accountants charge by "time".
8. When paying salaries to directors, can they enjoy Hong Kong individual tax exemption if they are in mainland China? Do I still have to pay taxes in mainland China?
Answer: If a director is a Chinese tax resident, his overseas income needs to declare personal income tax to the tax location.
9. After applying for onshore tax payment, do I have to pay onshore tax in the future?
Answer: No. Each fiscal year is based on your actual business.
10. Among many customers, only one is a Hong Kong merchant. Can I still apply for offshore tax exemption after deducting the income of this customer?
Answer: Yes.
11. The third point "Other expenditure invoices" in the tax return is a random invoice, an electronic bill for air tickets and other travel expenses, or a personal bill without the name of the Hong Kong company in the remark. Is that okay? Because Hong Kong offshore companies are not registered in China, they cannot provide tax numbers for invoicing operations like domestic companies.
Answer: Yes.
12. Can a foreign personal account transfer money to a Hong Kong company?
answer: In theory, it is possible.But it also depends on what kind of payment is sent to you from the foreign personal account?
13. If a shareholder who is not a Hong Kong resident receives dividends, does he need to pay salary tax?
Answer: It depends on which country the Hong Kong company’s shareholders are tax residents? Wherever the shareholder's tax residence is, can he return to where to pay tax?
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