Hong Kong’s tax system based on a territorial source principle offers a significant advantage for businesses: profits derived from outside Hong Kong are not subject to Hong Kong Profits Tax. This means that if your company qualifies, you could enjoy a 0% tax rate on all offshore profits—a benefit that can substantially enhance your company's tax efficiency. But navigating the offshore claim process requires expertise and careful preparation. That’s where PKF’s experienced tax advisors come in.

Why Choose PKF for Your Offshore Profit Claim?

Our team specializes in helping clients accurately and successfully apply for offshore profit exemptions. We guide you through every step of the process—from initial assessment, documentation collection, application preparation, to handling inquiries from the tax authorities. Our deep knowledge of the Hong Kong Inland Revenue Department’s (“IRD”) requirements ensures your application is thorough, compliant and maximized for approval.

Real Success Stories

At PKF Hong Kong, we take pride in our established track record of helping clients to successfully substantiate their offshore business activities and secure offshore profit tax exemptions. A recent example involves a successful defence of an e-commerce client specializing in the global trade of furniture. 

From the outset of their business journey, we worked closely with them, offering strategic advice and comprehensive guidance on meticulous documentation practices, which they diligently followed.  When the IRD issued complex inquiries regarding the offshore nature of their operations, our client was well-prepared, thanks to our proactive approach. Leveraging the robust documentation our client had maintained and our tax expertise, we swiftly dealt with the IRD’s inquiries and secured their offshore profit tax exemption, resulting in substantial tax savings.

This success story reflects our commitment to delivering tailored solutions and proactive planning, ensuring our clients achieve tangible financial benefits with confidence and ease.

Comprehensive Support for Every Industry

No matter your industry - conventional trading, e-commerce, digital marketing, software sales, consulting and services - if your profits originate outside Hong Kong, you might be eligible for the offshore exemption. Our team provides tailored advice to ensure your business meets all criteria and prepares the necessary evidence to support your claim.

What We Offer

• Eligibility Assessment: We analyze your business model and source of profits to determine your qualification.
• Strategic Planning & Advisory: We advise on the optimal timing for claims and how to maintain compliance for future assessments.
• Documentation & Application Preparation: We assist in gathering comprehensive records—transaction details, correspondence, management records, and more—and prepare all necessary application documents.
• Liaison with HK IRD: We handle communications with the IRD, ensuring your application and supporting documents align with their requirements.
• Handling Tax Investigations: In case of IRD inquiries, we guide you on how to respond effectively, protecting your offshore status.

Gain Confidence with PKF

Applying for an offshore profit claim is a detailed and fact-based process—your success depends on meticulous record-keeping and precise documentation. PKF’s professional guidance minimizes risks, enhances your chances of approval, and helps you unlock the tax efficiency benefits available under Hong Kong law.

Contact us today to discover how our expertise can help you maximize offshore profits and optimize your tax position. Let PKF be your trusted partner in navigating Hong Kong’s offshore tax regime and turning global opportunities into tangible savings.