HK Company Ltd for Crypto holding and tax-free cash out?

[Mercury]

Is incorporating a HK Limited to hold and cash out crypto tax-free achievable?

UBO: HK non-resident
Corporate Banking: Singapore (DBS/OCBC/SC ....)
Crypto: Stablecoin (USDT) as capital contribution and loans from UBO
Cash out to SG offshore bank account: USDT -> USD (OTC) 1/month or less. Capital gain close to 0 and income not remitted in HK tax-free?
Dividend paid tax-free to UBO in HK/SG personal bank account

 

[Sols]

Depends on where you live.

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This is the probably the answer to your question.

 

[Mercury]

Sols said:
Depends on where you live.
Click to expand...

Thailand.
No issue/enforcement with CFC or PE rules to punctually manage your business from your laptop.
No income will be directly derived in Thailand.

 

[Amandograde]

Mercury said:
Is incorporating a HK Limited to hold and cash out crypto tax-free achievable?

UBO: HK non-resident
Corporate Banking: Singapore (DBS/OCBC/SC ....)
Crypto: Stablecoin (USDT) as capital contribution and loans from UBO
Cash out to SG offshore bank account: USDT -> USD (OTC) 1/month or less. Capital gain close to 0 and income not remitted in HK tax-free?
Dividend paid tax-free to UBO in HK/SG personal bank account
Click to expand...

the q here is: will you be able to get these bank accounts, esp. for the hk company dealing in crypto trading? In Dubai for example, this was always like the literal sword of damocles. 😉

The personal ones can be literally be anywhere as long as your residence is in a territorial tax place.

 

[Mercury]

Amandograde said:
the q here is: will you be able to get these bank accounts, esp. for the hk company dealing in crypto trading? In Dubai for example, this was always like the literal sword of damocles. 😉
Click to expand...

Agreed, but I assume in 2024 it should be or will be possible to get proper business banking for a HK company dealing with (clean) crypto.

In any case, if tax-free is legally possible with such structure, it makes HK Ltd a way cheaper and reliable solution than UAE to cash out crypto.

 

[Sols]

Mercury said:
Thailand.
No issue/enforcement with CFC or PE rules to punctually manage your business from your laptop.
No income will be directly derived in Thailand.
Click to expand...

That's not quite what the new changes in Thailand appear to be moving towards but, if we assume tax is a non-issue where you live, the structure mentioned would likely end up being zero-tax. Might be wise to ensure you don't use HK based/registered crypto exchange and take other steps to not create economic activities within HK, for example.

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This is the probably the answer to your question.

 

[ZipZop]

interested in this topic: not the crypto part but the remaining. did you go forward with it? could you open your corporate account in the mentioned banks?

 

[Mercury]

ZipZop said:
interested in this topic: not the crypto part but the remaining. did you go forward with it? could you open your corporate account in the mentioned banks?
Click to expand...

Not for now.