Pay myself a salary from one of my new companies with 0 revenue?

[thomasparra]

One of my companies is in HK, newly created. My goal is to collect HK individual income before the end of the fiscal year which is the end of March 2024. The issue is that I have not generated personal income during this fiscal year.

Can I inject more funds into the HK company, and pay myself a one-off salary/consulting fee to me as an individual so I can pay declare it to the tax office?

Last edited: Feb 27, 2024

 

[uplana]

would look a little strange or don't you think so ?

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[thomasparra]

uplana said:
would look a little strange or don't you think so ?
Click to expand...

I do not think so, to whom specifically?

 

[daniels27]

Provide a loan to the company and then pay out the salary. You then have a company with losses.

Not sure if the immigration department is looking at this when you renew your visa (in case you need it for that). You may also just declare sole trader income in your tax return and pay tax on nothing.

 

[banafinfodafuggiano]

thomasparra said:
One of my companies is in HK, newly created. My goal is to collect HK individual income before the end of the fiscal year which is the end of March 2024. The issue is that I have not generated personal income during this fiscal year.

Can I inject more funds into the HK company, and pay myself a one-off salary/consulting fee to me as an individual so I can pay declare it to the tax office?
Click to expand...

What's the reason of doing this? just for the Tax losses?

Also did you manage to get offshore tax exemption?

 

[daniels27]

banafinfodafuggiano said:
What's the reason of doing this? just for the Tax losses?

Also did you manage to get offshore tax exemption?
Click to expand...

If he lives there, he cannot do offshore. You need some income when you live there.

 

[thomasparra]

daniels27 said:
Provide a loan to the company and then pay out the salary. You then have a company with losses.

Not sure if the immigration department is looking at this when you renew your visa (in case you need it for that). You may also just declare sole trader income in your tax return and pay tax on nothing.
Click to expand...

That's correct it's for future immigration purposes (PR). Thought it would be sad to waste 4 years of residence out of 7 just because I was out for a year.

 

[daniels27]

Yes you should keep it. You need minimum 360k per year. Note that the tax on the first 360k is almost entirely exempt. You should do more. If you use the company, you can carry forward the loss. It will give you a tax advantage in upcoming years. Maybe ask you auditor first if he is fine with that.

Who is you auditor? Can you recommend somebody cheap?

Please note that you also need some proof of residence for the renewal of the visa.