Offshore claim (also known as profits tax exemption) refers to the fact that the operating profits of a Hong Kong company are derived outside Hong Kong, that is, they qualify as occurring offshore and are not subject to profits tax in Hong Kong under the tax laws of Hong Kong.

In the process of audit, the accountant will determine whether the current business model meets the conditions of offshore by reviewing the transaction documents of the Hong Kong company and communicating with the operation and management personnel of the Hong Kong company. If so, the statement of profits tax at the end of the audit report will indicate"Offshore",At the same time, the profits tax payable by the company is0". Submitted thisOffshoreThe audit report is equivalent to having submitted an exemption application to the tax bureau.

The Inland Revenue Department does not send out a letter every year requesting a response to the profits tax exemption for the current year and providing relevant materials, so there is no need to make an offshore claim every year and incur unnecessary costs. Only after receiving the letter from the tax bureau (the letter will be issued in English for the first time, but if you apply for the Chinese version, the Tax bureau will issue the Chinese version), you need to follow the letter20The process of replying to multiple questions and providing relevant information in order to prove to the Inland Revenue Department that the year actually meets the conditions for offshore occurrence is called offshore claim.

Once an offshore claim has been successfully answered, there is little chance that the Inland Revenue Department will send a letter requesting a reply and information in subsequent years.

Some clients entrust other agencies to act as agents for the Hong Kong company at the beginning, and then transfer to Huanze Company in the middle of the process. Before the transfer, some clients worried that it would be difficult to connect with each other in case they had to deal with the tax issues of previous years after handing over to Huanze Company. This concern is natural, but unnecessary. There are two reasons:

First, if the Hong Kong company has made offshore claims before, the possibility of follow-up questions is very small. So far, Ringze has done it200In many cases, the company with only one customer was asked twice, that is, it made two offshore claims. The reason was that the company had been engaged in offshore business and successfully exempted once. The reason why it was asked by the tax bureau the second time was that the business model of the company had changed from all offshore business to all offshore and onshore business. So the tax office asked again.

Second, even if the tax bureau once again asks about the profits tax of the year before the transfer to Lianze, we can also help the customer to properly deal with it. Lianze has already done many cases of half-way transfer and successfully completed the profits tax exemption for the customer.

CycloseFocusing on providing company 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 large state-owned enterprises and listed enterprises.