0% taxes on offshore profit – incorporation in 24 hours after receiving the signed documents – set up price 1998,00 €
- Registered Address
- Company Secretary
- Significant Controller Register
- First Written Resolution
- Company Round Stamp
- Certificate of Incorporation
- Business Registration Certificate
- Company Stamp For Banking Purpose
- Certificate of Incumbency
- Customer Service Support
- Bank Document Support
- Referral to Neo Bank -set up company business account with Bank card
- 12 Business Hours
- Postal fast delivery service
- Including Government fees
Annual renewal fee from the year 2025 is € 580,00+€600,00 for annual financial statements only for statistic (no taxes!)
Hong Kong is known for its territorial tax system, which means that only income sourced in Hong Kong is subject to tax. Offshore income—income that is earned outside of Hong Kong—is typically not taxable. Below is an overview of the taxation system in Hong Kong, especially concerning offshore income:
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1. Territorial Tax System
• Taxable Income: Only income derived or earned in Hong Kong is subject to taxation.
• Exempt Income: Offshore income (income generated outside Hong Kong) is not taxed, even if it is remitted to Hong Kong.
• Profits Tax: The profits tax rate is:
o 16.5% for corporations.
o 15% for unincorporated businesses.
• Offshore income is generally exempt from profits tax, provided it qualifies as foreign-sourced.
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2. Criteria for Offshore Income
To determine whether income is sourced in or outside Hong Kong, the Inland Revenue Department (IRD) applies the “source of income” principle. Factors include:
• The nature of the business.
• Where the operations or services generating the income take place.
Income is typically considered offshore if:
• The contracts giving rise to the income were negotiated and executed outside Hong Kong.
• Business activities (e.g., production or delivery of services) occurred outside Hong Kong.
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3. Offshore Tax Exemption (Profits Tax)
To claim offshore income tax exemption:
• A business may need to file an “Offshore Profits Claim” with the IRD.
• Supporting documents (e.g., contracts, invoices, business operation details) may be required to prove the income is foreign-sourced.
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4. Other Tax Considerations
• No Capital Gains Tax: Hong Kong does not tax capital gains, regardless of whether they are onshore or offshore.
• No VAT or Sales Tax: There is no value-added tax (VAT), goods and services tax (GST), or sales tax in Hong Kong.
• No Withholding Tax: Hong Kong generally does not impose withholding tax on dividends or interest payments.
• Personal Income Tax (Salaries Tax): Individuals are taxed only on their income sourced in Hong Kong.
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5. Anti-Tax Avoidance Measures
While Hong Kong’s tax system is straightforward, the IRD has introduced measures to prevent abuse, such as:
• Transfer Pricing Rules: Transactions between related parties must be conducted at arm’s length.
• Economic Substance Requirements (for Offshore Entities): If you operate through offshore entities, ensure they meet the required economic substance criteria.