Many people register Hong Kong companies and open bank accounts after registration to operate international trade or cross-border e-commerce and other international businesses. After operation, Hong Kong companies will retain some profits. Some people worry that these profits retained in the bank accounts of Hong Kong companies may be levied a high tax.
Many people register Hong Kong companies, open bank accounts after registration, operate international trade or cross-border e-commerce and other international businesses, after operation, Hong Kong companies will retain some profits, some people worry that these profits are retained inHong Kong companyOn the bank account, may be levied a high tax, here is the answer.
First of all, according to the Hong Kong tax law,Hong Kong companyAudit report and tax declaration should be submitted to Hong Kong Inland Revenue Department every year. If the audit report shows that the profits of the Hong Kong company originated in Hong Kong, the company is subject to profits tax to the Hong Kong Inland Revenue Department. Profit is equal to income minus various costs and expenses, so the money retained in the bank account does not represent the profits of the Hong Kong company. The Hong Kong Tax Bureau will not decide whether to pay tax and how much tax to pay according to the balance of the bank account.
Secondly, there are some people in the market who have registered Hong Kong companies, have opened bank accounts and are operating normally. But this roomHong Kong companyIt does not entrust Hong Kong certified public accountant to make audit report and tax declaration every year. I submitted it as a zero declaration, which means I told the tax bureau that my Hong Kong company did not operate. This operation has a very big tax risk, because the Hong Kong company opens a bank account, the bank followsCRS(Standard for Automatic Exchange of Tax-related Information on Financial Accounts) requires the collection of the account holder's information, as well as the balance of the bank account, which will eventually be transferred to the Hong Kong Inland Revenue Department through the local tax bureau. The Hong Kong tax Bureau knew that the Hong Kong company had operations, but the declaration was zero. In this case, the Hong Kong Inland Revenue Department may ask for an explanation or be forced to assess the tax.
So, taking these two things together,Hong Kong companyThe balance of the account is not directly related to whether you pay taxes or not, and how much you pay. If the Hong Kong company has operation, it needs to make audit report and tax declaration in accordance with the regulations.
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