Royalty in Hong Kong Tax(HELP)

The IRD in Hong Kong will not require your client for any tax evidence, royalty, being paid to UK Toys Association. Rather, the IRD will ask you for any royalty payment agreement between your client and the UK company. In theroy, it is not a royalty payment obligation of your client but only an reimbursement payment to that UK company incurring this expense. It is the terms of sales of the UK company to your client that such an expense has to be absorbed by your client and being part of the purchase cost.

如果聽你咁講，你個客本身在英國要交英國稅係好正常，不過你要記住：由於你係負責俾專利費，稅務條例第20A要你扣繳稅。由於英國同香港有雙重課稅減免，如果英國公司唔想俾兩邊就要提交財務報表，經稅務局審批才可以退還部份稅款。
僅供參考！