ProfitstaxinHongKongisleviedonthesourceofacompany'sprofits.HongKongdoesnotchargeprofitstaxonprofitsthatdonotoccupyHongKongresources.Therefore,whentheHongKongcompanymakestheauditandtaxdeclaration,itinformsthetaxbureauthatourcompanyisanoffshorebusiness,andthebusinessoftheHongKongcompanydoesnotoccupyHongKongresources,sothereisnoneedtopaytax.Afterthat,thetaxbureauwillinquireaboutthebusinessprocessofthecompanyindetail,andtheHongKongcompanywillanswertheinquiry,whichiscalledoffshoreclaim.
Nowadays,manyenterprisesandindividualswilloperateinHongKongregisteredcompaniesforthedevelopmentoftheirinternationaltradebusiness.However,mostHongKongcompaniesoperateoffshore(donotinvolveonshoreanddonotneedtopayprofitstax).TheHongKongInlandRevenueDepartmentwillrequiretheHongKongcompanytomakeoffshoreprofitdefense(i.e.offshoreclaimorprofitstaxexemption)basedontheauditreportsubmittedbythecompany.
TheprofitstaxofacompanyinHongKongisleviedonthesourceofitsprofits.HongKongdoesnotlevyprofitstaxonprofitsthatdonotoccupyresourcesinHongKong.
TheauditreportofaHongKongcompanywillgenerallyreflectwhethertheprofitisonshoreoroffshore.Ifthecompany'sincomeisoffshoreprofit,itwillgenerallybeafterthesubmissionofthereport3-4Theannualmeetingreceivedthetaxdefensedocumentsissuedbythetaxbureau,whichmainlyrequiredtheHongKongcompanytoreplytothequestionofoffshoreprofitswithinatimelimit(generallyonemonth),andthecorrespondingoriginalcertificatesshouldbeattached.
IncorporatedHongKongcompaniesarepopularwithdomesticentrepreneursbecausethetaxsystemisdifferentinHongKong.Inparticular,iftheprofits(profits)ofaHongKongcompanyarederivedfromoutsideHongKong(i.e.offshorebusiness),accordingtotheprovisionsoftheHongKongtaxlaw,thereisnoneedtopayHongKongprofitstax,butonlythroughtheoffshoreclaimprocesstoachievetheresultoftheHongKongprofitstax.