✔ 最佳答案
I am not a tax expert, but do have experience to work with tax consultants in similar cases. Pls refer to DIPN 21 for case reference. For your questions:
1. No doubt it is source from HK, because:
(a) "the staff of B Ltd negotiated and concluded in HK the contracts with the European and US customers", resulting to profits arise in HK from a trade
(b) "For accounting and customs declaration purposes, the finished goods were treated as being sold by the factory to B Ltd which then sold to customers.", documentwise, a trade has been obviously identify.
2. Whether it is contract processing or import processing is irrelevant in this case, because the profit is derive in HK as above. I believe it is import processing because of 1b above.
3. Fully taxable in HK because contracts negotiated and concluded totally in HK
You should ask your client to restructure their process (e.g. contract negotiate in China), and I think their situation is ideally suitable to claim offshore profit
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Where the effecting of the purchase and sale contracts does not require travel outside Hong Kong but is carried out in Hong Kong by telephone, fax etc, the contracts will be considered as having been effected in Hong Kong.
Where a Hong Kong business pursuant to group directors, “books” profits and the Hong Kong activities of the Hong Kong business are limited to any of the following, the profits will be accepted as non-taxable:-
- issuing or accepting an invoice to or from an ex-Hong Kong customer or supplier of the group on the basis of terms already concluded by an ex-Hong Kong associate;
- arranging letters of credit;
- operating a bank account, making and receiving payments; and
- maintaining accounting records.
