Cross border transactions and investments require careful analysis and review. They are affected not only by the laws and regulations in the originating country and in the target jurisdiction but also potentially anywhere else in the world. This is particularly true for tax issues because fiscal authorities are keen to take their share and discuss it later.
For the sake of certainty and to avoid multiple tax obligations, many countries have signed double tax treaties (correctly named “treaties for the avoidance of double taxation”) which reduce a potentially higher overall taxation.
When dealing with China, Hong Kong is an attractive location because it provides a favorable tax rate of 16.5% of the profits generated within the territory and zero nil on profits generated elsewhere.
Hong Kong is a party to various double tax treaties with major trading nations so careful tax planning is vital for the ultimate bottom line and should certainly include Hong Kong.
We offer fine-tuned tax advice taking into account our clients´ specific international business requirements and structures. Our goal is to achieve a most advantageous legitimate tax exposure on their activities in Hong Kong and China in the context of other jurisdictions.
We help with such key issues as:
- International tax planning
- Setting up tax efficient corporate structures
- Structuring IP – rights and assets
- Restructuring existing business activities
- Structuring acquisitions
- Tax planning for sales and purchases, as well as outsourcing of services
- Transfer price issues
- Tax efficient compensation agreements
- Support and advice for negations with tax authorities
- Tax returns in Hong Kong and China
- Accounting and book-keeping