Tax services

Cross-border Hong Kong, China, Europe tax services

Tax environments change rapidly, influenced by globalisation, increased visibility of tax data to authorities in various jurisdictions, and to conform with new tax treaties.

Fung Yu tax services cover everything necessary for businesses and individuals in Hong Kong and China.

We can help with all your needs, from daily routine compliance and transactional tax issues to long term tax optimization for your organisation, its owners and senior executives.

As with everything we do, we never try to reinvent the wheel and only apply proven methods to assist you.

We make sure the most complicated and technical matters make sense to you and your cohorts. We’ll answer your questions clearly and solve your issues.

Navigating China’s complex tax rules

We have a thorough understanding of the enterprise and individual tax compliance environment in China, and ensure the tax you are paying should not exceed what you really have to. Company operators and business owners often need assistance with this.

Mergers, acquisitions, international trade and assignments in China must be conducted according to specific tax rules. It’s essential to understand Chinese tax law and structure.

Chinese tax regulations governing business activities are actively updating and evolving. We keep up with the changes to give you peace of mind.

Fung Yu tax services include:

Hong Kong corporate taxes

Hong Kong tax is based on the territorial concept, which means only income arising in or derived from Hong Kong is subject to tax. In addition, all capital gain, dividend income or bank interest income are exempted from tax. With one of the lowest tax rates in the region, Hong Kong has long been famous as a solid and useful efficient platform for conducting international business and a popular holding vehicle.

Same as all things in life – things are always easier said than done. Utilising the tax benefits available for corporate taxpayers in Hong Kong requires certain specialised knowledge and practical experience. We bring in-depth local knowledge and international expertise to your company’s tax preparation process, based on a thorough understanding of your business’s specific needs. Our tax advisors can assist in equipping your organisation with customised, tax-efficient strategies that evolve with your current business developments and future plans.

Hong Kong individual income taxes

Among multinational companies, Hong Kong has always been a popular location for locating their Asia Pacific headquarters.

It’s also the logical first offshore office for many Chinese companies.

The city is home base to thousands of senior executives working in the region.

Apart from corporations, we advise numerous senior executives, business owners and wealthy individuals on their personal tax matters.

We handle most individual tax engagements such as

  • Basic personal tax compliance
  • Minimising personal and employer corporate taxes
  • Structuring remuneration packages
  • Bonuses and option schemes
  • Corporate statutory compliance for staff and executives

China corporate tax

A constantly changing regulatory environment

As the world’s fastest growing economy, laws and regulations in China undergo frequent updates and changes. Tax practices also vary from city to city and province to province.

Mandarin Chinese is the only official language in China. Many foreign investors find business more challenging than in Hong Kong where governance is supported with English.

Fung Yu has dedicated teams of professional accountants and tax practitioners in their offices in Beijing, Guangzhou and Shanghai. They have a deep understanding of local practices and applications and will support you with true bilingual tax advisory and investment services.

Leave the complex detailed China tax to us

We’ll prepare and file your corporate tax returns, negotiate with tax bureaus and advise on Chinese tax compliance and advisory needs covering:

  • Full compliance tax-efficient corporate structures
  • Preparation and filing of routine corporate tax returns
  • Representing you in negotiation with local tax bureaus
  • China enterprise income taxes
  • China value-added taxes
  • Miscellaneous local China taxes, surcharges and other obligations

Our China tax services are trusted by hundreds of clients worldwide, from start-ups and sizable private companies, to listed multinationals. Contact us anytime for a consultation.

Chinese individual income taxes

Any individual who obtains a salary or fee sourced from mainland China is possibly subject to the Individual Income Tax of China.

This tax can be applied whether you are a resident of China, or not.

The team here at Fung Yu team has a deep understanding of China tax practices and applications. We can handle many kinds of engagement related to individual tax compliance issues in China.

We offer a wide spectrum of bilingual individual China income tax compliance and advisory services to entrepreneurs, expatriate staff, executives and wealthy individuals, including:

  • Preparation and filing of individual income tax returns
  • Negotiating with tax bureaus
  • Advice on Chinese tax compliance and related advisory services

Hong Kong / China cross border tax exposure

Data suggests nearly two-thirds of foreign direct investments in China were conducted through Hong Kong.

Over half of investments outbound from China to overseas markets were also channelled through this international financial hub.

Hong Kong is a major platform for inbound/outbound Chinese investments due to a variety of reasons:

  • A bilingual legal framework
  • Favourable geographical location
  • World-class banking and financial infrastructure
  • Double tax treaty between China and Hong Kong

Tax exposure is an important consideration of every business transaction. It’s a question of deep concern for most companies.

Fung Yu has strong expertise in tax exposure and live and breathe taxation every day.

As a regional firm under one ownership and management, we speak in one voice. Talk to us about developing the optimum China inbound/outbound investment structure in full compliance with tax obligations.

Mergers and acquisitions

Mergers and acquisitions are very common in Hong Kong and China at every stage of the economic cycle.

In fact Hong Kong has long offered a strategic platform for M&A deals in the region.

Fung Yu is frequently involved in M&As. We have provided advice on many tax aspects of these deals, including:

  • Hong Kong profits tax and stamp duty
  • China enterprise income tax
  • Individual Income tax exposure
  • Profit tax exposure on disposal
  • Stamp duty exposure during the transfer of ownership

Fung Yu is especially valuable to multinationals performing cross-border M&A transactions.

As well as offering experience and insights, our practitioners in multiple offices speak the language of both sides.

You reduce the hassle of having to seek advice from different professionals in each jurisdiction.

Your Fung Yu team of advisors will help you avoid pitfalls and unforeseen tax burdens.

We’ll show you the way to navigate M&A deals with plans and strategies that legally minimise any projected tax burdens.

International assignments

Globalisation has expanded the circumference of opportunity for many businesses – and the circle continues to widen.

Globally connected businesses need talented people to keep their circle of influence intact.

The increased mobility of business executives often brings about complex tax issues.

Focusing on Hong Kong and China, we advise on practical legal solutions to reduce the income tax exposure of globally active executives.

We already serve the senior executives of many sizable global organisations with operations in both Hong Kong, China and abroad.

Territorial source advantages

The territorial source concept is a unique aspect of the Hong Kong tax system. It means only income or profits derived from Hong Kong will be taxed.

The territorial system brings additional benefits. Hong Kong has negotiated double tax treaties with over 50 jurisdictions. This can offer tremendous benefits when using Hong Kong as an outbound investment vehicle.

Our full range of advisory and compliance services relevant to international assignment include:

  • Statutory tax compliance services, including acting as the profit tax representative and ensuring statutory compliance with the Hong Kong Inland Revenue Ordinance and mainland China tax laws
  • Advising on tax aspects and labour law compliance when structuring senior executive remuneration packages
  • Hong Kong taxpayers can apply to the IRD for an advance ruling that gives clarity about their tax position for certain transactions or arrangements. We have vast experience designing regional executives’ remuneration packages that take advantage of advance rulings

Common reporting standards

What is it?

The Common Reporting Standard (CRS) was developed in response to the G20 request and approved by the OECD Council in 2014.

It requires jurisdictions to obtain information from their financial institutions and share it annually with other jurisdictions.

The CRS defines the financial information to be exchanged, which institutions are required to report, and the various types of accounts and taxpayers covered. It mandates the due diligence procedures to be followed by financial institutions.

Why is it significant?

The 100 plus treaty signatories include China, Hong Kong, France, UK, Switzerland, Japan and most developed jurisdictions.

Financial institutions in these countries must exchange information about customers declared as residents.

CRS have entirely changed international wealth planning for High-Net-Worth Individuals.

Under CRS, banks, fund houses, insurance companies, trust companies, and other institutions managing deposits and funds are obliged to report their customers’ financial information to tax authorities.

Trusted advisors

Many business owners, entrepreneurs and high net worth individuals have long trusted Fung Yu for advice about CRS compliance.

Before its implementation, we worked with tax advisors in multiple jurisdictions to ensure clients were CRS compliant in their personal wealth planning.

Just ask. We’re here to help with your CRS compliance.

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