Tax exemption status
In the tax computation, we will mention that the company did not carry on any trade, profession or business in Hong Kong nor did it generate any profits arising in or derived from Hong Kong.
IRD (Inland Revenue Department) will then issue an offshore claim queries letter for the proof by providing the passport of the directors/ sales representatives and some samples of sales and purchase/service fee invoices, contracts/agreements and shipping documents e.g. bill of lading. The IRD will give a deadline to answer the tax quarries. The company can ask for extension for the deadline if it cannot meet the original deadline. Furthermore, IRD will usually issue assessment based on tax payer’s calculation first without any investigation. And they will investigate later.