IIT and PE issues for a HK consulting firm
Background A HK consulting firm (‘A’) sent its consultant staff to Mainland China to provide consultant services to the clients of an advisory company in Mainland China (‘B’). A charges B consultancy fee of RMB 5m. Under normal circumstances, the consultant staff would not spend more than 183 days in any calendar year on the […]
A Fallacy about the Requirements for Keeping Hi-Tech Status
Background A multinational group headquartered in Europe (“EU Co”) owns a Foreign-Invested Enterprises in Mainland China, FIE 1, which in turn holds 100% equity interest in FIE 2. FIE 2 mainly purchases raw material from local suppliers, manufactures machines, and sells to FIE 1 who then sells to corporate clients. FIE 2 is certified as […]
Solutions for a Foreign-Invested Enterprise to Increase Capital
Background A multinational group headquartered in the US (“US Co.”) owns a subsidiary in Hong Kong. The Hong Kong subsidiary (“HK Co.”) is the shareholding company of a Foreign-Invested Enterprise (“FIE”) in Mainland China. The FIE’s primary business involves sourcing telecommunication products from China and locally selling to their corporate clients. Challenge Initially, when […]
Charities: to tax or not to tax?
Charities In Hong Kong SAR, there is no statutory definition of what constitutes a charitable institution or trust of a public character (“Charity”) with a charitable purpose, nor is there a single piece of legislation which governs Charities in Hong Kong and how donations are applied. In 2017, the Hong Kong SAR Government’s Audit Commission reviewed various government departments’ supervisory measures […]