Claiming Offshore Profits
A Hong Kong company could claim Hong Kong profits when delivering its first audit, 18 months maximum after the company incorporation. This is the approach for most SME’s when the effective place of management is located outside of Hong Kong.
Its also possible to request for a pre-ruling, when the expected profits will be important and when a component of the business / financial flow might create an issue (i.e. when a payee or payor is located in the city).
The pre-ruling arrangement is considered as demanding in term of resources and costs but for an active company this remain a good option.