Enterprises that meet any of the following conditions in the Hong Kong Tax Confirmation Rules are regarded as Hong Kong tax residents:
1. (When the entity is a company) A company incorporated in Hong Kong or registered outside Hong Kong, China, but its main management or control is a company conducted in Hong Kong, China.
2. (When the entity is not a company) An entity established under the laws of Hong Kong, or an entity established under the laws of other countries or regions, but its main management or control is an entity conducted in Hong Kong, China. "Main management or control" in the legal sense does not require that both management and control must be carried out in Hong Kong. "Management" refers to the daily business and operation management, or the implementation of decisions made by the top management. "Control" refers to the top management's control over the overall operation of the enterprise, such as making core business strategies, making strategic decisions, financing decisions, performance evaluation, etc.
Mainland tax recognition rules are established in the Mainland according to law, or enterprises established in accordance with the laws of foreign countries (regions) but with actual management institutions in the Mainland shall be recognized as mainland tax residents. Enterprises established in the mainland according to law include enterprises, institutions, social organizations and other organizations with income established in the mainland according to mainland laws and administrative regulations. Enterprises established in accordance with the laws of foreign countries (regions) include enterprises established in accordance with the laws of foreign countries (regions) and other organizations that obtain income. The actual management organization refers to the organization that carries out substantive and comprehensive management and control over the production and operation, personnel, accounts and property of an enterprise.
Enterprises, partnerships and sole proprietorships that are not regarded as tax residents are not tax resident entities. Partnership enterprises take partners as taxpayers, and sole proprietorship enterprises take investors as taxpayers. According to CRS requirements, tax transparency agencies are also reportable entities, such as partnerships.
Tax liability of Hong Kong companies 1. Profits tax: this is a tax that needs to be paid on the company's profit income.
2. Salaries tax (income tax): Salaries tax is one of the taxes, and many times we emphasize personal income tax.
3. Registration tax: it is the tax related to the registration of companies in Hong Kong.
4. Tariffs: Generally speaking, there are no tariffs in Hong Kong, and only four categories are subject to tax, including alcohol, tobacco, hydrocarbon oil and methanol.
Individuals, enterprises, partnerships and custodians engaged in any commercial or trade business in Hong Kong must pay taxes on their profits in Hong Kong.
6. All expenses are allowed to be deducted from the taxable amount, except the following items: family or private expenses, capital expenses, expenses paid to obtain taxable profits, factory/machine depreciation and related capital subsidies, and losses inherited from the previous tax year. ?
7. All operators must submit profits tax returns to the Inland Revenue Department every year. ?
8. Normally, in April each year, the Inland Revenue Department will issue a tax return for employees' salaries and pensions to employers, who must complete and return it to the Inland Revenue Department within 65,438+0 months after the form is issued. Employers are required to notify the Inland Revenue Department in writing within three months after employing the taxable employee, 65,438+0 months before the taxable employee is suspended, and 65,438+0 months before the taxable employee leaves Hong Kong.
Tax liability of mainland companies 1. To set up a company in the Mainland, the general company will involve the following seven taxes:
Value-added tax, urban maintenance and construction tax, education surcharge, local education surcharge, stamp duty, personal income tax and enterprise income tax.
2, special industries need to pay three kinds of taxes:
If an enterprise's business involves special commodities stipulated by the state, it needs to pay taxes, including consumption tax, resource tax and tobacco tax.
3. If the company holds or buys or sells real estate land, there are five kinds of taxes involved, including deed tax, farmland occupation tax, property tax, urban land use tax and land value-added tax.
4. If the company purchases vehicles, the taxes involved will include the following two types of vehicle purchase tax and vehicle and vessel tax.
5. If an enterprise directly discharges the following pollution, the taxes involved are environmental taxes.
6. Monthly (quarterly) advance tax declaration of enterprise income tax (applicable to audit collection) Resident enterprises that implement audit collection shall handle monthly (quarterly) advance tax declaration of enterprise income tax with the competent tax authorities within 15 days after the end of the quarter or month.
Hong Kong's tax liability is different from that of the Mainland. If you want to know more about tax issues, you can consult a professional company, such as CIGNA Zhongchuang International Accounting Firm Co., Ltd. in Hong Kong, which should help you.