It is interesting to know that there was not any signed tax agreement between Hong Kong and other countries until 2001. Mostly it deals with the fact that all offshore companies could be taxed at the place of making business. That issue excluded the possibility of double taxation.
Presently Hong Kong government concentrates on making agreements with other countries. By law Hong Kong can act separately from China and sign agreements about double taxation avoiding independently.
Signing of new tax agreements between Hong Kong and other countries becomes a new step of the economy development. Since 2010 Hong Kong government signed about 40 agreements with such countries as Switzerland, Singapore, Liechtenstein, Germany, France, Austria and others. Moreover, there were signed numerous agreements about taxation of income from shipping and air transport services.
The relationship between Hong Kong and China is regulated in the memorandum of understanding. According to it all revenues generated from any kind of transportation are exempt from tax in China. Also, the memorandum assumes the provision of certain tax benefits to Hong Kong, for instance, Hong Kong residents shall not be taxed in China on the condition that they stay on its territory no more that 183 days per year.
To conclude, making offshore business in Hong Kong becomes easier because after company formation in Hong Kong you will be able to make your business whenever you want. Hong Kong creates for you a unique opportunity to make business in such countries as Switzerland, Singapore Germany and Austria. Swiss Financial Yard will be your personal advisor on the issue of company incorporation. Contact our specialists to receive more information about benefits of having an offshore company.