What are tax exemptions for offshore companies in Hong Kong?

Generally, offshore companies are free from tax liabilities, all foreign-sourced incomes are tax exempted for companies incorporated in Hong Kong. To be qualified for Hong Kong offshore tax exemption, companies need to be assessed by the Inland Revenue Department (IRD) of Hong Kong.

According to IRD, the following are excluded from the assessable profits:

• dividends received from a corporation which is subject to Hong Kong Profits Tax;
• amounts already included in the assessable profits of other persons chargeable to Profits Tax;
• interest on Tax Reserve Certificates;
• interest on, and any profit made in respect of a bond issued under the Loans Ordinance or the Government Bonds, or an Exchange Fund debt instrument or a Hong Kong dollar-denominated multilateral agency debt instrument;
• interest income and trading profits derived from long term debt instruments;
• interest, profits or gains from qualifying debt instruments (issued on or after 1 April 2018) exempted from payment of Profits Tax; and
• amounts received or accrued of a specified investment scheme by or to one person

If you still want to know more information about tax exemptions for Hong Kong offshore companies, you can contact our consulting team via email: [email protected]

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• Profit accounting Hong Kong
• Auditing service Hong Kong