T K Lo & Co

Hong Kong CPA Firm



Disclaimer: Material in this website is for general reference , surfers should take appropriate professional advice upon particular circumstances.

 免責聲明:本網頁內容只供一般參考,瀏覽者須按其情況諮詢適當的專業意見 

 Copyright 1999-2022 All Rights Reserved


Why we would like reserve our copyright up to Year 2022  ?  Firstly, what are the service objectives of today's CPA in the generation of biotech, infotech, AI, globalization, AML, trade-war and anti-globalization ?

Most of the CPA are providing 3A services, namely accounting, auditing and advisory. Accounting in the past may be known as recording the history by figures,  in fact today's accounting has already been promoted to "reporting" not only historical figures, but also including disclosures behind and hopefully to achieve the foresight from the insight. If today's accounting cannot help reader plan the 3 years to come, all the accounting duties of CPA should have been replaced by a desktop computer under the supervision of AI, instead of an accounting professional of mankind. In short, today's accounting should let us learn from the past and plan for the days to come, up to  Year 2022. This is one of our service objectives.

Even an intelligent client of accounting may not able to achieve the foresight easily in the complicated generation, auditing and advisory services of us wish to value add on the top of accounting to help client raise to the challenge of the uncertain future by relying on the least luck. Value-added is another service objective of us.

事豫則立, 不豫則廢. 我們希望透過審計及諮詢服務助客戶提升實力應對不確定及充滿考驗的未來, 且只需依賴最少的運氣便可預測預備3年後2022的到來. 今時今日, 會計已不只是數字的歷史紀錄, 它應要有披露和深入報告的功能. 在這生物科技, 資訊科技, 人工智能, 全球化, 打擊洗錢, 貿易戰和反全球化的世代與審計及諮詢服務共同增值及找尋CPA的服務目標, 達致我們的服務承諾.


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Removal Notice  搬遷通告 



Offshore Company’s Economic Substance Laws

Many offshore company jurisdictions, including BVI and Cayman Islands, passed Economic Substance Laws under international efforts of the European Union (EU) and the Organization for Economic Cooperation and Development (OECD) to regulate the tax avoidance of multinational organizations. Those Economic Substance Laws raise the tax transparency requirements and reporting obligations of all companies registered in these traditional tax havens. Unless the conditions of economic substance are satisfied, the registered company will not be accepted as a tax resident in the place of company registration. And there is a presumption that each non-accepted local tax resident company should be a tax resident in another jurisdiction which is expected to report and disclose.

In addition, banking and commercial services are demanded to comply with AML verification about owner’s identity and nature of business activities. Companies in the recent years should come across more and more know-your-customer (KYC) enquiries in operation, e.g. in bank account operation, business license registration, investment and real properties transactions, legal and accountancy services, etc. 

New Recommendations to Non-Multinational Group Company & SME Business

Although the detailed guidance and reporting requirements are not yet fully issued or clarified by offshore jurisdictions, we trust the request to report each offshore company’s place of tax resident and taxpayer identification number (TIN) is unavoidable in future. In the past, we did not recommend customer to apply for registration as Non-Hong Kong Company in Hong Kong Companies Registries, as the Hong Kong law only requires the offshore companies which established a place of business in Hong Kong to apply for Hong Kong registration. Also, the registration would lead to obligations to report the business performance to the Hong Kong Inland Revenue Department for their assessment of Hong Kong Profits Tax. For the companies not having trading activities in Hong Kong and not subject to Hong Kong tax liabilities, the Hong Kong registration would create unnecessary administrative burden to prove its non-taxability status in Hong Kong. Moreover, even an offshore company has obtained registration from Companies Registry and Inland Revenue Department (IRD), it is still not able to obtain Certificate of Resident Status from IRD for enjoying tax benefits in double taxation arrangement with other countries. 

In the coming days, we would like to give new general recommendations to clients maintaining offshore company registration for private or business purposes as below.

  1. Client is required to review its cost/benefits analysis for continuous renewal of offshore company registration. The benefits normally include keeping a greater privacy in shares ownership and keeping bank accounts for private money remittance between different countries or locations.

  2.  If an offshore company client has trading activities or income not subject to income tax in Hong Kong or other jurisdictions, it needs to decide which location is the most appropriate place of tax residence for the offshore company. If the most appropriate place is Hong Kong, the company should consider obtaining Non-Hong Kong Company Registration and Business Registration Certificate as a supporting document of Hong Kong tax resident reporting in future.

  3.  If an offshore company is a pure equity holding company (except for dividend income and         capital, it should not have financial loans due from or to other parties or other activities), it can also consider obtaining Non-Hong Kong Company Registration and Business Registration Certificate for the easy reporting and compliance purposes. If an offshore company decides not to obtain Non-Hong Kong Company Registration and Business Registration Certificate, it needs to avoid having trading income or activities be subject to reporting obligations in the jurisdiction concerned.

  4.  As revised and new guidelines or regulations based on the economic substance laws may be issued by offshore company jurisdictions in future, the above recommendations should be adjusted and updated periodically.

 

境外公司的實質經濟活動法規 

包括英屬維京群島及開曼群島等的境外公司管轄地在歐聯(EU)及經濟合作暨發展組織(OECD)的國際努力下已通過實質經濟活動法規且提高了稅務透明度及呈報責任等要求除非公司符合有關條件否則不會認可為擁有註冊地本土的稅務居民身份並且會假定其為某另一管轄地的稅務居民要求作出適當的申報和披露此外銀行及其他商業服務也被要求施行對公司擁有者身份及業務性質的打擊洗錢等認定手續公司近年應該已遇到不少此類對客戶資料的查詢 

對非跨國集團公司及中小企的新建議 

雖然於各管轄地詳細法規的指引仍未完全推出,我們相信境外公司未來被要求提供其真正稅務居民身份的管轄地點和稅務編號(TIN)等資料是在所難免一直以來香港法例只要求在香港設有業務經營地點的境外公司才需要到香港公司註冊處登記為香港公司而且這類登記同時會引致需要把業務表現向香港稅局呈報作為評定是否需要繳納利得稅因此過去我們提議如公司沒有貿易活動香港稅務責任境外公司的香港登記應該是可免則免避免產生不必要的行政工作以證明不用繳交稅款況且得到由公司註冊處和稅務局發出的非香港公司登記不代表可享有本土稅務居民身份的認證也不能從國際雙重稅務安排下享有優惠 

不論客戶是因私人或商務原故而現時擁有境外公司註冊我們希望就近期變更了的法規和指引提出下列在未來日子普遍適用的新建議 

1)      客戶應重新分析維持境外公司註冊的成本/得益檢討得益一般包括保留股東資料較大的私隱和可開立銀行帳戶方便銀行轉帳匯款等 

2)      如境外公司有貿易活動或收入現時無需繳交香港或其他管轄地的稅款請盡快決定那一地點是最合適申報為公司稅務居民身份的地點若是香港則可考慮申請非香港公司註冊和商業登記作為未來呈報稅務居民身份的憑證 

3)      如境外公司只用作持有權益性股份的控股公司 (除股息和資本增值外沒有財務借貸及其他活動)也可考慮申請非香港公司註冊和商業登記如決定暫不申請公司需要保持避免產生任何收益或活動引致在境外註冊管轄地有呈報的責任 

4)      由於各境外公司管轄地將來有修正或新的經濟實體法規或指引施行以上建議應不時重新審視和調節



 






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