It is worth noting that in recent years, the authorities have adopted a more stringent standard in investigating foreign taxation of companies. Thus, it is not easy to apply for exemption successfully. However, the success rate can be improved with our professional assistance. Please contact us for further enquiries.
Many of our clients think that once the offshore tax exemption is granted, the company will not have to pay tax on all their businesses. In fact, the IRD will re-examine the business of a company every three to four years. For instance, a newly-hired logistics manager of one of our clients arranged for a shipment to pass through Hong Kong in order to speed up the delivery. Yet, he did not realise that this was in breach of the offshore tax exemption requirements and would result in the transaction not being entitled to the offshore tax exemption. Therefore, we will continue to check the bills of lading for our clients ahead of the annual tax season even if they are granted the exemption. This is to help them to ensure the offshore tax exemption requirements are met in all aspects.