HK Company - Sole Director/Owner: Pay myself in dividends?

[thomasparra]

For a HK tax resident who controls a HK company. What is the stance of IRD when paying myself fully in dividends versus salary, since dividends are tax free?

 

[intlman]

Do you have PR in Hong Kong?

 

[thomasparra]

intlman said:
Do you have PR in Hong Kong?
Click to expand...

I have a residence visa, but no PR yet.

 

[thomasparra]

I have a‌ residence visa, but no PR yet.

 

[intlman]

Paying yourself only in dividends could potentially make it harder to renew your visa, TBH.

But then again, the last time I renewed my HK investment visa the staff at immigration‌ didn't really look at things in any real detail.

 

[thomasparra]

intlman said:
Paying yourself only in dividends could potentially make it harder to renew your visa, TBH.

But then again, the last time I renewed my HK investment visa the staff at immigration didn't really look at things in any real detail.
Click to expand...

Good point. I could always pay myself a small base salary anyways, and pay the rest in dividends. The base should be taxed less than 8% anyways.

Do you have PR?

 

[thomasparra]

Good point. I could always pay myself a small base salary anyways, and pay the⁤ rest in dividends. The base should be taxed less than 8% anyways.

Do you have⁣ PR?

 

[daniels27]

Maybe check the time of the visa you are on. Some will give you 6‌ years of you have 2M+ in salary.

What visa you you on? When did you‍ get/renew it?

Got the salary question. I know people with a Bahamas company and a⁠ Hong Kong one. The Hong Kong one makes almost no profit and if only for⁤ hiring the guy at a base salary of scout 1000 USD per month.

 

[intlman]

No, I let my visa expire.‌

 

[bibing]

May I ask how‌ much you invested in the company to successfully get an Investment Visa in HK?

 

[intlman]

When I did it back in 2013,‍ I got away with only having $500,000 HKD in the business.

Nowadays it's highly recommended⁠ that you have at least $1M HKD in the business, and about the same amount⁤ in a personal account.

 

[belarus]

That was a lot of money to throw as an investment in one's forum. Can‌ this money be invested in one's own company as share capital?

 

[intlman]

You just need to show three months worth of bank statements. After you're issued⁠ the visa, you can withdraw the money.

 

[bibing]

That's incredibly low.

HK Visa Geeza (a guy who runs consulting for this kind⁤ of Visa, I don't know if you know him) I remember telling you needed 2M⁣ HKD in the business minimum.

Too bad I didn't because I had the money back⁢ then but never applied out of fear of getting rejected.

 

[intlman]

I know of Stephen Barnes (HK Visa Geeza), yes.

A close friend of mine managed to⁤ do it in 2011 with just $180,000 HKD (and that money he borrowed from friends!).⁣

 

[JackAlabama]

looks like these days it might be possible again⁠ for these amounts.