Hong Kong Offshore Company Tax Process

Offshore Company Tax Process

Have you ever envisioned of framing an offshore company? In the severe world, a few people are setting up an offshore company to encounter colossal advantages.

Still wrecked, regardless of whether to frame it or not?

Indeed, if you are a business visionary who needs to make their name in the all-inclusive race, at that point, think about offshore financial companies on your need. In any case, the genuine inquiry that emerges now, where you should incorporate it to work viably.

Numerous individuals feel better to put resources into the Asian areas. However, where? If you are stressed over the location for your offshore company, at that point, why not look at Hong Kong?

Curious to learn that for what reason are we counseling you regarding framing an offshore company in Hong Kong? Keep perusing the article; we have accumulated all the necessary data about our statement.

Hong Kong is one of the most tax-accommodating jurisdictions on the planet, for both people and companies.

Follow the guide to learn about setting up an offshore company as well as opening an offshore bank account to enjoy the benefits.

[Read: How Can Business Consultants Help to Start an Offshore Company in Hong Kong?]

Corporate Tax in Hong Kong

From 1 April 2018, Hong Kong has presented a two-tier profit tax regime, i.e., there are two tax rates: one for benefits till HK$ 2 million, and the other past that.

  • For a typical company functioning in Hong Kong, the corporate tax is 8.25% for benefits to HK$ 2 million and 16.5% over that
  • For an unincorporated company type (sole ownership or association), the comparing tax rates are 7.5% and 15%, respectively

The tax evaluation period is 1 April to 31 March consistently.

It's to be noticed that this tax is collected on a company doing business in Hong Kong – on benefits derived from within the nation. In this way, benefits have a foreign source (offshore benefits) don't fall inside the regional extent of Hong Kong's taxation framework, including those received by locally consolidated companies.

What Is Not Taxed?

The accompanying taxes are not charged in Hong Kong:

  • Sales tax or VAT
  • Real estate tax
  • Tax on dividends
  • Capital gains tax
  • Withholding tax (i.e., tax on dividends or interest paid to an individual dwelling outside Hong Kong)
  • Tax on income received from abroad

Tax Incentives in Hong Kong

The accompanying tax incentives are accessible for qualified onshore and offshore companies in Hong Kong:

  • 100% tax allowance on capital use towards environment-friendly ecology-restoration machinery and automobiles
  • 100% exclusion on new costs towards plant and machinery, explicitly identified with manufacturing – to advance high-esteem producing businesses
  • 5-year exclusion on capital use for the redesign of corporate property
  • Uncommon waivers for trusts and mutual funds

[Read: How to Buy a Shelf Company in Hong Kong?]

How to File Corporate Tax in Hong Kong

All qualified companies are needed to present the accompanying records to the Inland Revenue Department (IRD) in Hong Kong for the evaluation time frame 1 April to 31 March each year:

  • Profits tax return form
  • Certified duplicate of auditor's report, balance sheet, and P&L statement
  • A supplementary form for financial information, tax data, and so forth.
  • Tax calculation indicating how the assessable benefit (or balanced loss) has been determined

Companies whose gross total profit doesn't surpass HK$ 0.5 million for the tax evaluation term need to submit just the benefits tax return structure and the beneficial structure.

Taxation for Hong Kong Offshore Companies

An offshore company in Hong Kong can complete its tasks only outside the nation. Since there are no taxes on the salary received outside Hong Kong (attributable to the regional tax framework here), there is no corporate tax for an offshore company in Hong Kong.

Nonetheless, a company subject to worldwide taxes is obliged to report its salary to its individual government.

Besides being one of the top nations in Asia to set up your business, Hong Kong highlights a mild tax system, making it one of the most favored areas for outsiders to put resources into and store their cash. In case you intend to begin your business in Hong Kong, various tax benefits anticipate you!

[Read: How to Start an Offshore Company in Hong Kong?]


We at Business Setup Worldwide can assist you with your incorporation, opening an offshore bank account, and tax arrangement in Hong Kong, particularly since we comprehend the motivating forces another Hong Kong company can profit by. Do contact us – even if it is for friendly advice!