HK company buying assets from a non-resident individual pay to HK bank

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  1. #1

    Join Date
    Aug 2010
    Posts
    1

    Question HK company buying assets from a non-resident individual pay to HK bank

    I am searching for info ( and yes, I am googling also) about what happens when an HK company is being assets from an individual, paying from a HK bank account to an HK bank account and the individual is non resident. My questions are

    Will the HK be required to withhold tax?
    As long as the HK company gets an invoice for the good from the individual, can the company pay to a private ( not a business ) HK bank account?
    Is the individual responsible for HK taxes for sale of assets ( though they are a non resident )?

    If you have moment and know the answers, any help is appreciated or if you can point me to place to web most likely to have these answers, again my thanks.


  2. #2

    Join Date
    Dec 2002
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    薄扶林
    Posts
    47,964

    >> Will the HK be required to withhold tax?

    No.

    >> As long as the HK company gets an invoice for the good from the individual, can the company pay to a private ( not a business ) HK bank account?

    Yes, as far as I know if it is an approved expense by the directors it does not matter.

    >> Is the individual responsible for HK taxes for sale of assets ( though they are a non resident )?

    Not your problem or concern as far as I know.

    If it is a sizable purchase, talk to your accountant rather than get random advice from forums.


  3. #3

    Join Date
    Mar 2010
    Posts
    238

    Withholding tax only applies to payments to overseas accounts (for intellectual property usage).

    You can pay the money to any HK account as long as there is an invoice. The counterparty might need to pay tax but, as Shri said, this is not your concern.