CPA led offshore claim planning, advisory, and claim process to ensure the your company’s offshore claim is compliant and well defended.
Hong Kong’s territorial basis tax system means that Hong Kong will only tax income made within Hong Kong. Income made outside Hong Kong can be tax exempt if an offshore profits claim is made.
A successful offshore claim starts at the planning stage. Our CPA led teams will help you:
Do a quick assessment form to find out if your business is eligible for offshore profits tax claim.
Hong Kong operates under a territorial source principle of taxation set out in the Inland Revenue Ordinance (IRO). Under this system, Hong Kong only taxes profits that arise in or derive from a trade, profession, or business carried on within Hong Kong. An offshore profits tax exemption claim is a formal declaration submitted to the Inland Revenue Department (IRD) requesting that foreign-sourced profits be exempt from Hong Kong Profits Tax (resulting in a 0% effective tax rate on those offshore profits).
The Inland Revenue Department (IRD) reviews offshore claims thoroughly, and the burden of proof rests on the taxpayer to build a defensible position to prove that profits are generated outside of Hong Kong. The best way to secure a successful offshore claim is to strategically plan and structure your operations well before the first transaction begins to ensure that the structure will be recognised as offshore by the IRD. Start the documentation of this process and the supporting documents right at the start. In our experience, whether clients have a smooth offshore claim often comes down to the quality of the documentation.
Get in touch with us immediately. Hong Kong IRD inquiries must be responded to within one month of issue. The first step is to nominate a tax representative and seek an extension.
Yes. CYLL is among a selective group of tech-forward accounting firms in Hong Kong actively utilizing and integrated with the Hong Kong IRD e-filing portal.
Be weary of firms that will charge a set fee for offshore claims as every single offshore claim requires a different scope of work…. We bill based on scope of work, complexity, and likely rounds of IRD inquiries, based on these assessed factors, we will quote a fixed fee.