Tax Question

Posted by WakeUp (393 days ago)

I have started a business partnership recently in HK with a friend.

Someone was telling me that we may not have to pay tax as we only deal with companies in China and export directly to Australia and USA. No business is actually conducted in HK. Saying this, we obviously have a HK bank account that funds enter and exit from.

I know we need to see a tax agent about this but are we liable for business or personal taxation?

Thanks

(I am based in Hong Kong)

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Posted by GreenValleys (392 days ago)

Whatever advice you receive in an open forum such as this should not be depended on - see that tax agent!

But for what it's worth I understand that if the business has been properly registered (and for your own protection, if for no other reason, it really ought to be) then the finances of the business must be kept totally separate from your personal finances. Then the business will be taxed on its profits, and you will be taxed on your personal income (including the amounts you draw from the business). I have no idea about the question about tax liability in HK, although surely someone is going to put their hand out and ask for the tax.

(I am based in Jakarta)