As the Belt and Road Initiative is in the ascendant, many Chinese companies investing abroad often choose to set up subsidiaries in Hong Kong.Hong Kong companyDo you need to pay tax on dividends to the parent company in China?

Hong Kong companyDividends to the domestic parent company, according to the tax law of China, the investment income of the enterprise needs to pay income tax, usually, the corporate income tax rate is25%.

Some enterprises think that dividends to pay taxes, then my Hong Kong company does not pay dividends, not do not need to pay taxes. According to the regulations, if the overseasHong Kong companyWhere there is profit, but in order to avoid tax, has deliberately not paid dividends, resulting in the domestic company to pay less tax, the competent tax authorities of the domestic company have the right to make tax adjustment on the domestic company, that is, the Hong Kong subsidiary has been deemed to have paid dividends to the domestic company in accordance with the proportion of shareholding, so as to require the domestic company to pay income tax. Therefore, if your domestic company has set upHong Kong companyPlease normalize the audit report. If the report shows that there is profit, it is better to pay dividends to the domestic parent company. The tax should be paid in time to avoid tax risks.

CycloseThe company is committed to providing domestic and foreign customers with corporate audit, tax declaration, registration, annual inspection, tax planning and other services in Hong Kong, Singapore, Dubai and other regions. Efficient, rigorous, intimate service has been favored by many private enterprises, listed companies and large state-owned enterprises.