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Hong kong offshore company 2023

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You have to pay attention at where you'll establish your tax residency because your‍ HK company will be considered tax resident there because of manangement and control rules.

You can say:

1. i'm not managing the company from country X, it's my HK director⁠ that's directing the show > then you'll be liable to tax in HK because it⁤ will be considerd local sourced income

2. i'm manaing the company from country X so⁣ your company will pay country X's CIT.

If country X is UAE then you'll pay⁢ 9%

If HK company is not vital for you i would reconsider the setup.
 
Very good point
This suit me better
2. i'm manaing the company︁ from country X so your company will pay country X's CIT.
I will think Maybe︂ can establish tax residency elsewhere
 
What if you live 1/3 of the year on a Caribbean zero tax island, 1/3‌ in Monaco , and the rest of the year mixed in multiple places?

Do you‍ have to tell Hong Kong where you are a tax resident? Then either the Caribbean⁠ island or Monaco should work.
 
You can establish tax‌ residency in HK by becoming ordindarly resident.

https://www.ird.gov.hk/eng/faq/pa.htm
Then you'll manage the company from other‍ places paying attention to not trigger tax residency elsewhere.

In this way income will not⁠ be derived from HK because you performed the work abroad.

The problem with this setup⁤ is that you will constantly need to move.
 
If IRD questions place of operations, they'll simply refuse to issue income⁠ tax exemption until you've satisfied them. If no permanent place is found, you're in a⁤ position where either the IRD thinks at least you're not in HK so whatever, or⁣ they can argue that because you can't demonstrate strong ties to anywhere else, the exemption⁢ cannot be reasonably issued.

Although the IRD is getting more difficult, they do still issue︀ plenty of exemptions. So it's probably fine.
 
Yes, this is one of the risks‍ going forward.

At some point i see them introducing the "subject to tax" clause like⁠ Singapore to exempt foreing sourced income.
 
Are you sure that will work?
In most countries,‍ it would be the exact opposite: You are tax resident in a high-tax country (e.g.⁠ your home is in Italy), you set up a company somewhere (US LLC, Cyprus, Estonia,⁤ BVI, take your pick), and then you travel for 9 months of the year. The⁣ company would be tax resident in your home country because it follows your tax residency⁢ and there is no substance anywhere else.
The only way this could work without employees︀ is maybe if you have an office in another country close to home (if you︁ live near the border) and then you can prove that you go to that office︂ every day for work and you really don't work from your home country.

So if︃ you're tax resident in HK because that's where your home is and you don't have︄ tax residency anywhere else, then I could imagine that the HK tax authority would say︅ the income is derived from HK, even if you travel for most of the year.︆ But I don't know how they handle it in practice.
 
You could use the‌ HK company as a means to establish HK tax residency, then form a LLP with‍ you as a partner with 100% ownership and the HK company (or a dormant UK⁠ LTD) at 0%.

If you need a EU VAT ID you could use a Estonian⁤ OU to bill EU customers and take out a salary tax free.

In any case,⁣ if you constantly move and don't stay long enough in any place to trigger tax⁢ residency this setup will achieve 0% tax.
 
Just out curiosity, why do you need a EU VAT ID?

If you sell services‌ to businesses based in another EU country you don't usually need to charge your customers‍ VAT. Your customers will pay VAT on the services received at the applicable rate in their country (using the reverse charge procedure)
 
+ Avoid habitual abode, significant residential ties, home, and family members who are tax︀ residents anywhere.
It is definitely possible. I know somebody who has done it for 15︁ years, circling between three countries while not paying a dime to any state authority.

It's tricky and risky, but you've got to play some tricks to avoid the (below) average︂ life, and achieve milestones like getting yourself 50 cars, etc.

A safer approach is to︃ have a tax residency in a zero-tax jurisdiction. There are also jurisdictions where you can︄ retain legal residence but avoid tax residency.
This, of course, costs something, so to pile︅ together enough money, it might be worth the attempt to pull off the perpetual traveller︆ route and, after a while, establish tax residency in a 0% tax jurisdiction or in︇ a jurisdiction where your income is not taxed.
It's, however not always feasible, depending on︈ your citizenship and current circumstances.
 
Good point, it also depends on your life stage.

If you are married with kids,⁠ the perptual traveller of course doesn't work but if you are a single under 30's⁤ you can use that strategy to amass cash.
 
I wouldn't⁠ rule it out totally, but good luck finding a perpetual traveller wife; or someone who⁤ does not have citizenship (stateless).

After all, not everyone wants to deal with the stuff⁣ that comes with being a citizen.
https://statefree.world/
 
Stateless is out‍ of the question, but with wife/ family multiple home bases works great. You have like⁠ three homes with everything set up on a Caribbean island or Panama/Paraguay/Uruguay, another in Europe:⁤ Malta/Cyprus/Monaco and last one in UAE or southeast Asia.
And then you circle between them⁣ throughout the year.
 
A lot of travelling⁠ if you want to treat your wives in different countries equally.
Having great citizenship can⁤ help which is more liberal in this sense.
It's not completely tax-free for citizens of⁣ UAE since they need to pay 2.5% Zakat, but I find the routine weekly schedule⁢ of some of these chaps quite remarkable:
  • Monday: Wife nr. 1
  • Tuesday: Wife nr. 2︀
  • Wednesday: Wife nr. 3
  • Thursday: Wife nr. 4
  • Friday: visit parents/family
  • Saturday: Take a rest/personal︁ time
  • Sunday: Girlfriend time/fun (e.g., piss on some Instagram model)
 
That's the deal according to Islam right, you can have‍ up to four wives, but have to treat them equally.

Was recently at a dinner⁠ with an old acquaintance of mine who is an ex-Minister in the government of a⁤ subsaharan African country, and had flown in for a brief holiday with one of his⁣ four wives. Not quite sure how it works, does he now have to take 3⁢ more holidays with his other wives? Does a multi-wife holiday count less than a 1︀ on 1 holiday?

Anyway, he seemed happy!
 
Yes, but they⁤ will expect an invoice with a VAT ID? I think an invoice with no VAT⁣ ID would look dodgy?
In fact, in theory, they have to validate your VAT ID.⁢
 
Why do you need an‌ EU company if you could use a non EU company to invoice EU customers without‍ VAT?

Are you required to use a EU company?
 
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