Offshore companies can apply for offshore tax claim when submit the first tax return and accounts, if the company has profit for the year, Inland Revenue Department
will issue a tax queries letter asking for the operation mode of the company’s business, full sets of documents such as sales & purchase invoices with shipping documents/ service fee invoices, bank receipts and payments copies and all relevant agreements, emails and fax correspondences for representative transactions as well as copies of passport record of directors/sales representative/ business operators. It’s one-off tax queries, once IRD approved the offshore status, the company’s profits will not be subjected to HK profits tax
for more than 5 years, the only thing need do is file the regular Profit Tax Return and audited report annually. IRD may not approve the offshore status if the company fail to answer the tax queries with sufficient documents and need to pay HK profits tax of 16.5% on assessable profits for each year.
The audited report should be signed original and submitted to IRD with the PTR. PTR should be originally signed by secretary/manager/director.
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