Quote: (06-26-2017 02:11 PM)Running Turtles Wrote:
Is there any reason NOT to set up a Hong Kong company while you're there? From what I understand, a HK company does not pay tax on income derived from non-HK sources. There is supposedly a very stringent check on it though, so I would probably get an accountant.
Many sellers on Amazon have done this to avoid high taxes in their home countries.
I have a HK company.
Getting the company set up is very easy. But opening a HK bank account as a non resident, whether personal or corporate, has become very difficult due to stricter anti money laundering policies and international pressure on tax havens, especially if you are an US citizen. I am not a US citizen and I still had to come to a face-to-face interview that lasted about 30 minutes, I had to provide proof of existing business activity (invoices, nature of business etc). I opened it at HSBC - DBS wanted an opening fee of about 10k USD or so and Citi wanted 100k USD in cash on the account at all times as an opening requirement.
Supposedly now it is even more difficult to the point that some of the company setup agencies are straight up rejecting any and all US clients. Even personal accounts seem affected and unless you are dropping serious cash into your account I highly doubt they will give any random tourist an account now.
Once the company is set up, you are required to conduct an annual audit and file a financial report and tax declaration through a CPA. Together with this, business license renewal, secretary / virtual office fees, etc. the company will you cost between 1k-3k USD annually depending on what you are doing with it, and this all needs to be done even if you your income is derived outside of HK.
It also doesn't absolve you from any personal tax liabilities you may or may not have in your country of residence.