Hong Kong: Offshore Business Sectors
Booking Centre Companies
Under the "territorial principle" of taxation only income which has a Hong Kong source is assessable to profits tax within the jurisdiction. Accordingly a number of entities have set up 'booking centre' operations in the territory under which only invoicing, banking and accounting activities are carried out within Hong Kong. So long as contracts of sale are negotiated and executed outside the jurisdiction and so long as the goods never enter Hong Kong the payment received, accounted for and invoiced from the territory is not deemed Hong Kong source income and so is not assessable to profits tax.