How to Qualify for Hong Kong’s Offshore Tax Exemption

Qualifying for Hong Kong’s offshore tax exemption is often misunderstood, yet approval depends entirely on how your business operates and where profit-generating activities take place.

Vincent from Statrys explains the conditions that determine eligibility, the principles the Inland Revenue Department applies when assessing claims, and the type of evidence needed to prove that profits arise from activities outside Hong Kong. He also outlines how to structure operations, document transactions, and prepare your application so you can demonstrate genuine offshore substance and maintain compliance over time.

Key Takeaways:

• Core conditions required to qualify for Hong Kong’s offshore tax exemption
• How the Inland Revenue Department determines the source of profits
• Business activities that support or weaken an offshore claim
• Documentation needed to prove offshore operations and economic substance
• The timeline for filing a claim and how long IRD reviews typically take
• Common reasons applications are rejected and how to address them
• How to structure operations from day one to strengthen future eligibility