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Non-resident limited company director and salaries tax

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  1. #11

    Join Date
    Jan 2008
    Posts
    1,966

    There is no tax on dividends in HK.


  2. #12

    Join Date
    Nov 2010
    Posts
    18
    Quote Originally Posted by emx:
    Surely your HK accountant/auditor can advise you.

    Didn't they do the books for you for 2014/2015?
    They are the ones who said "No matter the staff are in HK or not, they still have to pay the personal tax if over the allowance."

    and also didn't seem to want to advise me further, so I'm ready to do this all with someone else going forward.


  3. #13

    Join Date
    Apr 2005
    Location
    Hong Kong
    Posts
    426
    Quote Originally Posted by Oldtimer:
    There is no tax on dividends in HK.
    Yes, however, you need to check what tax you will be paying on overseads dividends in Taiwan.

  4. #14

    Join Date
    Jan 2008
    Posts
    1,966

    If the Profits are not Taxable in HK, then expenses incurred are also not tax deductible. In essence you just file your audited accounts.


  5. #15

    Join Date
    Mar 2011
    Posts
    47

    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.

    Khema and reirei like this.

  6. #16

    Join Date
    Apr 2013
    Posts
    31
    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.
    This means that the income you earn as a director is taxable in Hong Kong.
    "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.