Offshore Claim for company or individual
Hong Kong is adopting a taxation concept of territorial source of income. Income are charged on those part which derived from or arisen in Hong Kong.
If an individual or a company derive their income outsider Hong Kong in a specified financial year, they are eligible to apply “offshore claim” for their income to IRD.
IRD will consider the totality of facts of your case, but not just one factor.
The most vital things IRD may concern are those:
- Whether customers and suppliers are outsider HK
- Whether contracts are negotiated, signed, enforceable outsider HK
- Whether delivery of goods is made outsider HK
- Whether payments are received and made outsider HK
- Whether the permanent establishment is located in HK
- Any staff be employed in HK
- Whether Central Management is outside HK