Jinetic.com/blog

Hong Kong, China does not issue TIN* for communicating with taxpayers. The following identifiers will be equivalent to TIN:

1. Individuals: Hong Kong Identity Card (HKID) number. The HKID is an official identity document issued by the Immigration Department of Hong Kong, China for all residents of age 11 or above (other than those exempted).
2. Entities: Business Registration (BR) number. The Business Registration Office of Hong Kong, China is responsible for registering businesses carried on by entities. The BR number is a unique number assigned to a business.

[Note: * An individual with a personal eTAX account may register a self-selected “TIN” with the Inland Revenue Department which is solely for accessing the e-services provided by the Department. Such “TIN” is not used as a tax identifier and therefore should not be provided or collected for automatic exchange of financial account information purposes.]

Source: OECD.org

QUESTIONNAIRE

Kindly fill in all details in the form

Company Information

Questions

Important Notice

Waiver of Business Registration Fees for One Year
(from 1 April 2016 to 31 March 2017)

The Revenue (Reduction of Business Registration Fees) Order 2016 (”the Order”) was published in the Government Gazette on 24 February 2016. By the Order, the fees payable in respect of business registration certificates and branch registration certificates that commence on or after 1 April 2016 but before 1 April 2017 will be reduced by a sum of $2,000 and $73 respectively. Taking into account of the Order, this Office has not demanded the registration fee for the above period in the renewal certificate and demand note for the business or branch. Levy still remains payable.

Please note that the Order is still subject to scrutiny by the Legislative Council. In the event that the Order is not passed or is amended by the Legislative Council, this Office would notify the proper amount payable for the business or branch.

For further enquiry, please call 187 8088.

Business Registration Office
Inland Revenue Department
March 2016

IRBR202 (2/2016)

A shareholder can sell all or part of his shares to another person. The Stamp Duty Office charges stamp duty for share transfer. The stamp duty is 0.2% of either the net asset of the company or the sale price of the shares, whichever is the higher. Our share transfer service includes:

1. Instrument of Transfer
2. Bought Note and Sold Note
3. Account confirmation letter
4. Preparation and filing of items 1. - 3.

The documents required by the Stamp Duty Office are:

1. A copy of the Certificate of Incorporation
2. A copy of the Articles of Association
3. The latest audited account of the company, if the company has conducted business or had assets
4. The management account less than 3 months old of the company, if the company has conducted business or had assets
5. Government form declaring values of real estate properties, if the company is holding any real estate property
6. A copy of Form NSC1, if any
7. Share transfer documents, if any
8. Share transfer agreement, if any

A company can add a new shareholder by allotting new shares to the shareholder. Our share allotment service includes:

1. Application for shares for each shareholder
2. Directors’ minutes approving the share allotment
3. Company’s minutes authorizing the directors to allot new shares
4. Preparation and filing of the Form NSC1

The following information is needed for documents preparation:

1. the new shareholder’s passport page scan copy showing the name
2. his residential address
3. number of shares / percentage of ownership he is going to acquire
4. the amount of fund he is going to pay to the company for the shares / percentage of ownership

Our company name change service includes:

1. Directors’ minutes authorizing the change of company name
2. EGM minutes authorizing the change of company name
3. Certificate of Name Change
4. New Business Registration Certificate
5. A set of new company chops

Items 1.- 4. are required for changing company name at the bank, and the signatures on item 1. must match the signatures on bank’s record. It takes 2 days to update the government record, additional 2 days to receive the new Business Registration Certificate. It will take the bank two weeks to update the company name after submitting items 1.- 4. to the bank separately.

1. Initial deposit: HKD $50,000.
2. Account opening fee: HKD $1,000.
3. Annual Fee: HKD $800.
4. If the average monthly balance is less than HKD $100,000, there will be a HKD $500 monthly fee

1. Company name
2. Principal activities
3. Total turnover during the period (HK$)
4. No. of sales during the period
5. No. of purchases during the period
6. Value of closing stocks at year end (HK$)
7. No. of land and buildings/investment properties
8. No. of motor vehicles
9. No. of valuable machineries / furniture
10. No. of debtors as at balance sheet date
11. No. of creditors as at balance sheet date
12. No. of subsidiaries and associates
13. No. of representative offices / branches
14. No. of bank accounts
15. No. of bank loans
16. No. of hire purchase items
17. No. of employees
18. No. of commission payees / subcontractors
19. No. of [1] shareholders and [2] directors
20. No. of pages of bank statements per month

1. The Certification of Incorporation of companies with common directors or shareholders
2. The latest 3 months bank statement of companies with common directors or shareholders
3. if there are no common directors or shareholders, please provide the employment contract or any documents to proof the relationship
4. Invoice and contract
5. Name of supplier and buyer (one to two companies)
6. Website
7. Business plan

Sample 1:

I hereby give you notice under section 51(3) of the Inland Revenue Ordinance that you are required to produce to me within the offices of the Commissioner within 21 days from the date of this letter the following further information to support your Profits Tax Return for the Year of Assessment 2005/06 :-

1. An organization chart and details of the Company’s establishments in Hong Kong and overseas. This should include the location and size of the office, the number of employees and their respective name, post title, duties and remuneration package.
2. A detailed description of the functions carried out by the Company in order to earn the commission income. For each of the activities identified, specify the name of the responsible person and the place where such activity was performed. This analysis should include:
   1. how the buyer/supplier was contacted;
   2. how the price of the goods was negotiated;
   3. how the sales/ purchase contract was prepared and signed;
   4. how the sales/ purchase order was processed;
   5. how the goods was stored and delivered to the buyer.
3. A copy of the service agreement with each of the commission payers.
4. In respect of each commission payer, details of the following:
   1. the name and address of the payer, and its relationship with the Company, its directors and shareholders;
   2. the type of goods being purchased/ sold;
   3. the name and address of the corresponding buyer/ supplier; and
   4. the basis of computing the commission.
5. Details of the largest amount of the commission earned during the year ended 31 December 2005 and analysis of each step of the significant activities carried out by the Company in earning the income, into the place of the service and the name of the responsible person.
6. A full indexed set of documents for the transaction described in 5. above, including:
   1. correspondence of negotiation with the buyer or supplier;
   2. the sales/purchase contract and orders subsequently effected;
   3. a travel schedule of each of the responsible persons, showing (for each trip) the date of departure from Hong Kong, the place and purpose of each visit and the period of stay in that country;
   4. documents executed by the Company on behalf of the commission payer;
   5. the invoice/ debit notes issued by the Company to the commission payer in respect of the services rendered;
   6. the basis of computation; and
   7. the banking and shipping documents.
7. The reasons that the commission so earned is not chargeable to Hong Kong Profits Tax.

If you fail to comply with this notice, I shall take legal action

Sample 2:

I hereby give you notice under section 51(3) of the Inland Revenue Ordinance that you are required to produce to me within the offices of the Commissioner within 21 days from the date of this letter the following further information to support your Profits Tax Return for the Years of Assessment 2005/06, 2006/07 and 2007/08 :-

1. Advise how the Company carried out the trading transactions.
2. Your comment and reasons that trading profit has an ex-Hong Kong source.
3. For the largest sales transaction in terms of sales value with the largest customer in the year of assessment 2007/08, provide a full indexed set of documents in chronological order, including sales and purchase agreements, purchase and sales orders, order confirmation, correspondence by way of letters, facsimile transmission, emails, invoices, letter of credit and shipping and insurance documents etc.
4. For the transaction selected above
   1. details of the nature, quantity and value of the products purchased and sold as well as the parties involved;
   2. clear and full version of each document with a brief description of the nature of the document and the parties concerned;
   3. the routing of documents (i.e. the sender and recipient of the documents). By reference to the documents, describe thoroughly how, where and by whom the purchase and sales activities were performed, from negotiations with buyers and suppliers, conclusion of contracts, issue and receipt of sales and purchase orders, confirmation and acceptance of the orders, arrangement of finance, inspection, delivery of goods to final