There is no tax on dividends in HK.
There is no tax on dividends in HK.
If the Profits are not Taxable in HK, then expenses incurred are also not tax deductible. In essence you just file your audited accounts.
This is what i advise my client
Non resident director wishing to whitdraw a salary from HK.
We advise you to pay yourself a salary up to the personal allowance granted by IRD ie hkd120.000. This is tax free for yourself and allowed as an expense on your company books.
Regarding the percentage of money over the personal allowance, we advise to have a pre-calculation.
How much will be your profit tax (company tax)?
How much will be your personal tax ?
We then choose together which option is the most tax effective.
Please remember that offshore does not mean tax free. Offshore means non taxed in that country it is recognised offshore. However it has to be taxed somewhere and you need to be careful to properly keep your books in order. Most of the time we advise to skip the offshore claim.
This means that the income you earn as a director is taxable in Hong Kong.A directorship is regarded as an office. In general, if you are a director of a company resident in Hong Kong, your full income derived from that office in Hong Kong is chargeable to salaries tax.
"Office" mean the director services you perform.
You can also be an employee for the same company, and this salary will not be taxable in HK if you don't work from HK.
You might have to make a work contract or otherwise show that you are an employee.
Last edited by nick5000; 17-05-2016 at 01:45 AM.