With the development of international trade, many mainland companies will choose to set up in Hong Kong. To set up a company in Hong Kong, it is necessary to understand the tax policies of Hong Kong, so as to make Hong Kong companies legal and compliant and reduce the tax costs of Hong Kong companies.
With the development of international trade, many mainland companies will choose to set up in Hong Kong. To set up a company in Hong Kong, you need to understand the tax policy in Hong Kong, so that you canHong Kong companyLegal and compliant while reducing tax costs for Hong Kong companies.
Hong Kong companyThe profits tax in Hong Kong is similar to the income tax in mainland China in that it is increased based on corporate profits. But there are big differences between the two regions in the face of losses.
First of all, we need to confirm whether the loss of the Hong Kong company is caused by normal operation, because the Hong Kong Tax Bureau believes that the profit is caused by normal operation, so it needs the loss caused by normal operation to make up for the profit generated by normal operation. So ifHong Kong companyIf there is no income from main business in the whole year, it will be considered that the company does not operate normally this year, and the loss cannot be offset against the profits in the following years. ifHong Kong companyIf there is main business income this year, the loss generated this year can be deducted from the company's in the following yearsprofit.
Mainland company loss recognition and make up rules, limited company's general loss tax bureau will be recognized. But the loss needs to be in5Make up within the year, if time exceeds this limit, then the loss can not be made up.
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