Hong Kong Offshore Profits Tax: Pay 0% on Offshore Income
Hong Kong taxes only profits arising in Hong Kong. If your company's income is sourced offshore, you can apply for formal offshore status: reducing your Profits Tax to zero on those earnings.
Who this is for
- HK company owners whose revenue comes entirely from outside Hong Kong
- International trading companies using Hong Kong as a holding entity
- Founders who set up in HK for banking and structure but operate globally
- Those paying HK Profits Tax and wanting to challenge the source of their income
What's included
- Offshore claim preparation for the Inland Revenue Department (IRD)
- Source of profits analysis and documentation
- IRD correspondence management
- Integration with your annual audit
How it works
Profit source documented
Contracts, invoices, and communications evidencing offshore activity.
Claim prepared
Formal offshore profits claim submitted with the Profits Tax Return.
IRD assessment
IRD review, typically 6–18 months.
Status confirmed
Offshore income confirmed exempt from HK Profits Tax.
Frequently asked questions
What does 'offshore profits' mean in HK?
Profits arising from transactions negotiated, concluded, and executed outside Hong Kong. If your sales contracts and decisions happen outside HK, the profits are offshore.
Is offshore status automatic?
No. You must apply to the IRD and provide evidence. The IRD scrutinises the claim, approval is not guaranteed.
What is the HK Profits Tax rate if I don't qualify?
8.25% on the first HKD 2 million of profits, 16.5% above that, for companies. Still lower than most jurisdictions, but offshore status eliminates it on qualifying income.
Does offshore status affect banking?
No. HK offshore status is purely a tax position, it does not affect your bank account or company standing.
Ready to get started?
Fixed price, real-time tracking, and expert handling, from first document to final approval.
Apply for Offshore Status