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Hong kong offshore company 2023
- Thread starter uranium
- Start date
No way. It is hong kong company and I would close dubai company.
There is no personal income tax in dubai
If you say so. Then the Federal Tax Authority will be happy to learn something new from you.
I didn't say there is personal income tax. Your Hong Kong company will be taxed like a UAE mainland company due to being managed and controlled from the UAE. It will have to pay 9% corporate tax.
You can only avoid this if you can explain that you are only a passive investor and that you have a director outside the UAE who runs the company.
In theory. In practice you will likely be able to fly under the radar.
I didn't say there is personal income tax. Your Hong Kong company will be taxed like a UAE mainland company due to being managed and controlled from the UAE. It will have to pay 9% corporate tax.
You can only avoid this if you can explain that you are only a passive investor and that you have a director outside the UAE who runs the company.
In theory. In practice you will likely be able to fly under the radar.
If we suppose that my hong kong company will be treated as mainland which I doubt..
How will UAE authorities know ?
I doubt they can control 9% tax in UAE
Current UAE law says that if a foreign juridical person (ie company) has permanent establishment in the UAE , it is subject to UAE corp tax.
UAE authorities probably will not know, at first at least, but the mechanism is that you have to tell Hong Kong Authorities about your business. And then there are a lot of multi and bilateral agreements and standards for sharing such info, so UAE authorities might get it from Hong Kong.
Read the FAQ on the Minitry of Finance website if you need additional confirmation, it is quite comprehensive
Osome has been wonderful for setting up an HK company for me and managing it (accounting, audit, etc) They have different tiers of service and I'm on one of the lowest, about 10K HKD per year.
In case they find out about your company after 5 years and figure out you evaded taxes - do you know what could happen then?
Have you asked questions how UAE prisons look like? Is it worth the risk? LOL
I have no plans to evade taxes
That's why I came ask here for advice
And still talk to lawyers
Until now I am still getting mixed opinions from everyone. UAE is world most unexpected country. Nothing clear and no body knows
I had issues with some bank accepting money from companies to my personal bank account.
They would send me an email on Dec 30 to send them details about these transactions within 48 hours or they will close my account.
Send it and never got any reply (in Dubai terms it usually means it's all fine).
So, always have at least two bank accounts in Dubai just in case. (If you have Emirates ID you can easily open at any bank).
Why not then run a company in UAE.
What's the advantage of HK if you still have to pay 9% in UAE?
Unexpected things can happen anywhere. Remember the riots in HK just a few years ago. It can happen again.
Because this is how territorial taxation works, right?
It's amazing how people could make very costly mistakes by thinking they know how things work.
Hong Kong SAR - Corporate - Income determination
Detailed description of income determination for corporate income tax purposes in Hong Kong
taxsummaries.pwc.com
"Foreign income
Hong Kong resident corporations are not taxed on their worldwide income. Foreign-sourced income is generally not taxed."
Taxation: Only income “derived from or arising in” Hong Kong is subject to a corporate tax rate of 16.5%. Overseas income or foreign-sourced income is exempt from Hong Kong tax.
The problem is what you think foreign sourced income is that's different from what Hong Kong's thinks foreign sourced income is.
Your definition is "as long as all my clients are not from HK i don't pay taxes"
HK's definition is "as long as income is not derived from work in HK you don't pay taxes"
If that wasn't enough HK is thightening FSI rules
Your definition is "as long as all my clients are not from HK i don't pay taxes"
HK's definition is "as long as income is not derived from work in HK you don't pay taxes"
If that wasn't enough HK is thightening FSI rules
Very interesting point of view
My plan is that I run a hong kong based company offshore, my business is online based. No work is done in hong kong. I'll not live there. On my website I don't plan to accept customer from hong kong
What do you think
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