Important question about tax - dividends?

[PeterWeig]

Hello
If i will send money from my offshore company to personal account to my country and then pay tax for dividends is then everything ok?
If will visit me Tax Office for question about these money and i will say its my dividends from my foreign company, will be ok without problem ?

Thanks

 

[clemens]

Where do you live and where is the company setup?

 

[PeterWeig]

In EU and company is in hongkong.

Where do you live and where is the company setup?

Hello, I am living in EU and company is in Hong Kong.

 

[clemens]

Speak with your tax advisor in your country he can help you. If you ask anyone of us, the answer is YES that works, your tax office may see it different!

 

[PeterWeig]

Speak with your tax advisor in your country he can help you. If you ask anyone of us, the answer is YES that works, your tax office may see it different!

Hello i asked tax advisor and he said me yes is possible.
And i have another question for you about taxes of company. Is 100% legit if im from EU and my company is from Hong Kong? I have online bussines about virtual goods so i can sell goods everywhere. I dont have any employee it is just myself.
Will it be without problem ?

 

[NicolasMaduro]

Hello i asked tax advisor and he said me yes is possible.
And i have another question for you about taxes of company. Is 100% legit if im from EU and my company is from Hong Kong? I have online bussines about virtual goods so i can sell goods everywhere. I dont have any employee it is just myself.
Will it be without problem ?

Wouldn´t your home country most likely want to tax the Hong Kong company as if it was incorporated in your home country?
Where are you from?

 

[Martin Everson]

Hello, I am living in EU and company is in Hong Kong.

You need to look at your EU countries CFC rules and also any double tax agreements. Your countries tax rules can very well make the HK company transparent for tax purposes if management control and place of operation is determined by taxman to be in your EU country.

P.S By transparent I mean the tax man will treat the company as if it was invisible and see only you on an income basis as directly earning the money even with no distribution of the company income......scary stuff.

 

[JustAnotherNomad]

Your tax advisor might have to report you.
If you don’t have an office and local director in HK, it’s extremely likely that they will consider the HK company taxable in your home country. (If they look into it. Of course there’s a chance you’ll fly under the radar, but that doesn’t mean it’s legal.)
By the way, whether you pay out the dividends or not doesn’t change that. But the moment you pay out the dividends and declare them to the tax office, it will be a red flag for them to investigate further.
I would not do it. Keep the money in the HK company and don’t pay out anything until you’ve moved to a different country. Or travel abroad and spend/withdraw the money there using a company credit card. But of course all of that may be illegal without declaring it to your tax office.