A client audited by a Hong Kong company recently received a "profits tax return" from the Hong Kong Inland Revenue Department-For a non-resident person in Hong Kong. Why did our client receive this tax return?
A recent oneHong Kong companyThe audited client received a "profits tax return" issued by the Hong Kong Inland Revenue Department-For a non-resident person in Hong Kong. Why did our client receive this tax return?
The client has submitted two consecutive annual audit reports to the tax bureau, and recently received this tax return from the tax bureau. The reason is that the client disclosed a royalty payment in the audit report, and the tax bureau required the client to truthfully fill in the departure tax return and fulfill the obligation of withholding and payment.
The Hong Kong Inland Revenue Ordinance provides that any person may use or be entitled to use in Hong Kong any patent, design, Property or rights in the nature of trademarks, Copyrights, etc., or in connection with the teaching or undertaking to teach, directly or indirectly, any use of the patent, design, Trademarks and Copyrights will be regarded as business income and subject to profits tax in Hong Kong.
For the royalties paid by the customer to this company outside Hong Kong, the Hong Kong Tax Bureau requires the customer to fulfill the obligation of withholding and paying the departure tax, which is the authorization of the other partyHong Kong companyProfits from the use of the patent are subject to profits tax in Hong Kong.If your Hong Kong company has to pay the fees mentioned above, it needs to pay special attention to the withholding and payment of departure tax.
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.