14 August 2015
OFFSHORE TAX CLAIM – HONG KONG
Hong Kong adopts a territorial source principle of taxation. Only profits which have a source in Hong Kong are taxable here. Profits sourced elsewhere are not subject to Hong Kong Profits Tax. The territorial concept has always been fundamental to the taxation of profits tax in Hong Kong.
Hong Kong's basis of taxation on profits from businesses
Basic principles for determining the source of profits
The Courts have over the years considered the subject of the source of profits. The following principles have emerged from authoritative court decisions – :
- Business presence overseas
- Place where decision is made
- Gross profits from transactions
- Matter of fact
- The operations test
- Antecedent or incidental activities
Should you require any assistance in relation to filing of Hong Kong tax return, please do not hesitate to contact us.
(852) 2574 8289 (Ext. 121)
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