Hong Kong / China Cross Border Tax Exposure

Data indicates that nearly two-thirds of foreign direct investments in China were conducted through Hong Kong, while over half of outbound investments from China into overseas markets were also channelled through this international financial hub. The reasons for using Hong Kong as a major platform for inbound/outbound Chinese investments is not incidental, but due to a variety of reasons such as its bilingual legal framework, geographical location and world-class banking system.

Following every business transaction usually comes the question of tax exposure. In our area of expertise, this is the most frequent area of concern for clients and indeed is a question that we handle each and every day. With our vast experience in this area, we are very well equipped with assisting clients with tax concerns regarding inbound/outbound Chinese investments.

Hong Kong and China have a Double Taxation Agreement which may allow a company to reduce its exposure. The details of the DTA between HK and China, like many other DTAs around the world, are complex and require careful attention.

At Fung, Yu & Co CPA we have been dealing with cross-border tax exposure for many years and many cases are familiar to us and can be dealt with quickly and efficiently. If your company needs advice on the Double Taxation Agreement between Hong Kong and China then approach us today with your needs.