At present, many companies use Hong Kong company as the platform for international trade, and the Hong Kong company will collect payment for costs and other expenses. So if the company only has these expenses, will there be tax risks if it has no personnel salary expenses?
Many companies use it nowHong Kong companyAs a platform for international trade, the Hong Kong company will collect payment for costs and other expenses. Will there be tax risks if the company only has these expenses and no personnel salary expenses?
inHong Kong companyWhen filing tax returns, it doesn't matter if there is no salary. However, if the Hong Kong company's business is offshore trade, because it is not subject to Hong Kong profits tax, the Hong Kong company may be subject to random inspection of the Inland Revenue Bureau for offshore profit defense.
In defense of offshore profitsHong Kong companyClarify the basic structure of the company, its day-to-day operations, who is responsible, what they do, where they work, etc. If the Hong Kong company has no personnel salary expenses, and the personnel appear in the corporate structure and daily operation, it will contradict itself, and it is difficult to make a reasonable explanation to the tax bureau. Therefore, the defense of offshore profits may not succeed, and the Hong Kong Tax Bureau may ask the company to pay back profits tax.
So, we suggestHong Kong companyAs a legal entity operating independently, it should have a basic personnel structure and corresponding personnel salary expenses, especially for large Hong Kong companies with offshore profits. This will prepare the company for an offshore profit defense and reduce the company's tax risk.
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