I got my HK Ltd this year together with my nice business account at a local bank.
Now for some reason I would like to open an other business account in some other asian jurisdiction. Reason is to diversify.
My agent there doen't really know how and where, so here I am asking you any good advice.
Technically I have been told that the offshore status in HK is something you ask at the end of the year and if the business respected some rule, you can apply for it and pay 0% tax, otherwise corp tax is 16,5%.
Somehow it seems that you are allowed to apply for the offshore status if you respect some aspects (non resident, biz done out of HK, no local employees, etc...). Well, this is reasonable, BUT:
the real reason why HK offers 0% tax to non resident companies is because HK doesn't have agreement with most countries and many of them might ask the companies to pay taxes on some other country.
To make it simple, a Spanish guy, who lives in Spain, incorporates an Ltd in HK, his biz is between Spain and Australia (so out of HK), due Spanish law the guy should declare the income in HK company to his country, then pay tax over there (HK is on the balck list of many countries, esp European).
To avoid the risk of loosing investors, HK offers this offshore status, but, now is the fact: HK will/can ask you after 2 or 3 years to show the tax payment in your country and if you never paid anything anywhere because the Spanish guy didn't decleare any HK income, well, then the guy gets troubles
Now for some reason I would like to open an other business account in some other asian jurisdiction. Reason is to diversify.
My agent there doen't really know how and where, so here I am asking you any good advice.
Technically I have been told that the offshore status in HK is something you ask at the end of the year and if the business respected some rule, you can apply for it and pay 0% tax, otherwise corp tax is 16,5%.
Somehow it seems that you are allowed to apply for the offshore status if you respect some aspects (non resident, biz done out of HK, no local employees, etc...). Well, this is reasonable, BUT:
the real reason why HK offers 0% tax to non resident companies is because HK doesn't have agreement with most countries and many of them might ask the companies to pay taxes on some other country.
To make it simple, a Spanish guy, who lives in Spain, incorporates an Ltd in HK, his biz is between Spain and Australia (so out of HK), due Spanish law the guy should declare the income in HK company to his country, then pay tax over there (HK is on the balck list of many countries, esp European).
To avoid the risk of loosing investors, HK offers this offshore status, but, now is the fact: HK will/can ask you after 2 or 3 years to show the tax payment in your country and if you never paid anything anywhere because the Spanish guy didn't decleare any HK income, well, then the guy gets troubles
