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Is Hong Kong the best jurisdiction for setting up an offshore trust/IBC?

Created on: 22/05/2013
Last post: 24/07/2013

Replies: 2
I am interested in setting up a few offshore trusts in Hong Kong for one of my contacts in Europe. Each trust will manage a Hong Kong IBC. The IBC will trade in the stockmarket.

The key criteria we have are confidentiality, security, reliability, and legally paying as little tax as possible.

As well as Hong Kong, we have been studying trust and IBC procedures and laws in various jurisdictions including Singapore, Labuan and Ras Al Khaimah.

Based on the criteria I have mentioned, how does Hong Kong compare with the likes of Singapore, Labuan and Dubai as a place to set-up an offshore trust and IBC for an individual based in Europe?

If we have an offshore company in Hong Kong and it trades on the stockmarket (in any country) via an online sharedealing account in Hong Kong, would it be liable to pay taxes in Hong Kong? What if the sharedealing account is located outside Hong Kong?

Thank you in advance.

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starting next year Hong kong companies will have a mandatory individual director

Created on: 11/07/2013
Last post: 12/07/2013

Replies: 0
although this change could be consider as a breach of privacy this need to be mitigate by the fact that the individual director could be of any nationality and country of residence
nominee services are stopped by most of the company formation actors, how do you feel with individual nominee ? Do you prefer a cheap Chinese rented name or a Western professional living in Hong Kong ? what is for you an acceptable cost ??.

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When will Hong Kong's trust laws be enacted and what will the tangible benefits be?

Created on: 22/05/2013
Last post: 23/05/2013

Replies: 0
Hong Kong's antiquated trust laws were supposed to be have been updated by now, but haven't been. Do you know when they may be implemented please?


Having studied the updates to the law, it seems the below will be the main revisions. However, I can't see many of them being relevant to the needs of most settlors. Which of them would have a tangible benefit to anybody seeking to set-up a trust in Hong Kong?

trusteesí statutory duty of care
short term delegation by a single trustee
trusteesí power to employ nominees, custodians and to insure
remuneration of professional trustees
regulation of exemption clauses of professional trustees
beneficiariesí rights to trust information
beneficiariesí rights to remove trustees
abolition or simplification of both the rule against perpetuities and the rule against excessive accumulation of income

Thanks in advance.


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Created on: 16/04/2013
Last post: 16/05/2013

Replies: 2

If I receive income from offshore with a Hong Kong based company but dealing with another Hong Kong registered company. Is that offshore trade or not?

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Foreign and salary tax

Created on: 30/03/2012
Last post: 13/05/2013

Replies: 7
I am considering setting up a company in Hong Kong for software development services. I am a resident of Brazil and live here. I would be the only shareholder and director. All clients would be outside HK and I will hire contractors in Brazil and China.

Am I right that my company would not pay income tax in HK as all profit is foreign sourced? Even if above HKD 200,00 a year?

If I pay a salary to myself as a director, would that be subject to salary tax?

What about my contractors' fees?

Thank you for your advice. Professional advice is accepted. If your proposal sounds interesting, I will get in touch and we can do a paid consultation to get into more detail.

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Bank accounts and tax

Created on: 10/04/2013
Last post: 23/04/2013

Replies: 4
I have a BVI company where I keeps some service income. Main reason for BVI is its tax-free position. However I want to remit the money to a bank account that I can easily access. I lives in Singapore and had a bank account for the BVI company in S'pore and had the funds remitted there. These are in turn routed to my personal bank account. This was dumb as I have to pay tax on them- I declare the $ as foreign dividends. I am looking for a way to avoid paying any tax on the remitted funds. This could be in 2 ways- potentially by changing the nature of the income, which I believed is not possible. The other way is to totally get out of S'pore- open a bank account for the company and personal bank account in some other jurisdiction. I would imagine I need to be present personally to withdraw funds. The jurisdiction must be such that such foreign-sourced income are not taxable and me, being a non-resident do not suffers any tax there. Is HK such a place or is there any candidate in Asia? Labuan perhaps?? Advice is greatly appreciated.

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Loan interest received from oversea subsidary
D Chan

Created on: 16/04/2013
Last post: 16/04/2013

Replies: 0
Our subsidary in Japan will start repaying a long-term loan principle plus loan interest to us (HK limited company). Does the loan interest taxable in HK?

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Taxes on winnings

Created on: 23/03/2013
Last post: 28/03/2013

Replies: 1
I have won A$160k in winnings in hong kong do i pay tax on that before it goes in to my account in australia or after i recive the money I live in australia

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nz for back room funds support and analysis

Created on: 22/01/2013
Last post: 23/01/2013

Replies: 0
I and my company NORTH PACIFIC SECURITIES LTD WELLINGTON [charris@northpacsl.co.nz] have been asked to put a programme together to enable HK based fund managers to set up back office support in wellington,for A team doing the market book work and support for HK based fund mnanagers who must be concerned at the high costs of being HK based,,,WELLINGTON HAS HUGE ADVANTAGES LIKE THE FOLLOWING..
4 HOURS AHEAD OF HK SO OVER NIGHT WORK FROM WALL STREET/UK DONE PRE HK OPENING,,,POOL OF QUALITY IT PEOPLE,,,GOOD EDUCATION,NO CORRUPTION,,,great TELECOM LINKS,, LABOUR COSTS MODEST,,,so this is a request for anyone interested to contact us for some action,,,we are working closely with the wellington city council [rents of nz 400$ a sq mt easy ] very good climate,,,airport 20 mins from cbd SIR CHRISTOPHER HARRIS CEO

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Investors for China Project

Created on: 20/08/2012
Last post: 20/08/2012

Replies: 0
I am from Austria and we are looking for investors for a gap in the market in China. where can I find in hong kong investors who wish to invest 320,000 euros? Verifiable documentation available. Yield 5%, plus 25% interest. All other benefits and detailed information, please contact after the initial contact with us. Only serious offers in writing to e-mail: "yiermei@gmx.at" send.

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personal assessment in company payroll

Created on: 17/08/2012
Last post: 17/08/2012

Replies: 0
I am a resident of Hongkong.currently employed in a hongkong company.I want to know whether personal assessment tax is applicable to company payroll or not?whether company will take into account personal assessment also when they calculate my income tax or only the salary tax?

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Hong Kong taxation for an Australian REsident

Created on: 27/04/2012
Last post: 03/05/2012

Replies: 1
I hold a UK passport but live in Australia as a permanent resident. I am considering taking up a position in Hong Kong. Where would tax be paid? Is there a double taxation agreement.

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Hong Kong

Created on: 18/06/2010
Last post: 14/04/2012

Replies: 3
I hold UK passport but resident in Rep of Ireland and make a tax return. I have been offered a post by a Hong Kong company, but my duties will be performed outside Hong Kong. Remuneration will be paid in Hong Kong, how can I minimise income tax both in Hong Kong and Ireland as there is no DTA between Hong Kong and Ireland.

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Hong Kong, China - tax ???

Created on: 12/09/2011
Last post: 25/03/2012

Replies: 8
A simple plan: 1. I open a Hong Kong based Ltd. company 2. I'm a Polish employed by this HK Ltd. company 3. I receive letters of invitation from my suppliers in China and obtain a business visa on a regular basis. 4. I have an appartment in China and stay on my business visa there conducting all my business: Find EU customers for my Chinese suppliers; add my commision; reinvoice through Hong Kong to keep my supplier anonymous. Is it legal ? Where do I have to pay tax ? Where can I apply for tax exemption? I'm green as far as tax law is concerned. Please help me.

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Taxes on HK holding company owned by foreigners

Created on: 17/12/2010
Last post: 20/03/2012

Replies: 3
If there 5 partners (3 individuals - 1 each from UK, US and Pakistan, and two private limited companies - i from UK and 1 from Pakistan) that desire to create a holding company in HK for the sole purpose of holding their ordinary shares in a UAE (tax free) joint venture company: 1- What would be the tax implications on the dividends received by the HK holding company? 2- Would there be any tax/charges on these dividends paid out to shareholders who are non-HK individuals and entities? 3- Can these individuals/entities open and operate their personal accounts in HK? Any tax/charges/conditions on that? 4- Any alternates? We know we are asking too much, but would be grateful for answers as it would help us select our consultant or rep. Thanks

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Important Notice: Wolters Kluwer TAA Limited has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments. All rights reserved.