In the past few years, many domestic individuals registered companies in Hong Kong and used Hong Kong companies to invest in the mainland. Now many invested mainland companies need to pay dividends to Hong Kong companies. At this time, some people found that there was a policy in China that Hong Kong companies held shares in domestic companies, and the income tax on dividends was only5%. But there are a number of prerequisites for taking advantage of the policy.
A few years ago, many Chinese individuals went to Hong Kong to register their companies and usedHong Kong companyWhen investing in the mainland, many invested mainland companies need to pay dividends to Hong Kong companies. At this time, some people will find that there is a policy in China that says that Hong Kong companies hold shares in domestic companies, and the income tax on dividends is only5%. But there are a number of prerequisites for taking advantage of the policy.
First you investedHong Kong companyA certificate of tax resident status in Hong Kong is required. And this document needs to be met3A condition:
1) Having physical premises and employees in Hong Kong;
2) Any director or officer of the company is a resident of Hong Kong and has domicile in Hong Kong;
3) The company has substantial business operations and income in Hong Kong
Secondly, there is also the need to meet the investment2A prerequisite:
1 ) the consecutive period before the Hong Kong company receives dividends12Hold domestic companies for a month25%The above shares;
2) Submit an application for reduction or exemption to the competent tax authorities in accordance with relevant provisions and pass the examination;
Only those that satisfy the above conditionsHong Kong companyInvestment in domestic companies to obtain dividends in accordance with5%The enterprise income tax is collected.
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