Hi,
Here's the situation...a company (Company A) is incorporated in US and UK but in HK it is registered under the Business Registration only (but not the Company Registry) as part of another HK-incorporated company - Company B (i.e., with both business registration and cmopany registration). Company B employs local employee(s) but in the contract it clearly states that the employees work for Company A, which is an internal division of Company B. The employment contracts are signed in Hong Kong.
All sales contracts go either to the US or UK office, but the employee(s) signing it is/are those HK employees of Company A.
I strongly believe that Company A should be filing and paying profit tax to Hong Kong government (and US/ UK governments) because part of the revenue is driven out of Hong Kong. So Either Company A has to file profit tax or Company B has to do this on Company A's behalf.
But someone told me that because all sales contract officially through through US/ UK, then Company A only needs to pay US/ UK taxes, but not HK taxes...
All employees in Company A are now paying MPF and HK employee income tax.
Am I right or is the other person right?
I just think that Company A is being short-sighted and one day, sooner or later, it will get into trouble with the Inland Revenue Department of HK...