Hong Kong signed the Common Reporting Standard and the AEIO (Automatic Exchange of Information) and unbelievably a lot of entrepreneurs don’t understand this new era and aren’t prepared for it.
As the banking information will be shared with the country of residence of the Hong Kong company beneficial owner(s) the so call offshore companies are transparent for many tax authorities.
The solution will be an increase of substance leading in order to obtain the Hong Kong Tax Residence Certificate and this means in addition to multiples factors to pay taxes in Hong Kong.
For beneficial owners residing in high tax countries its also a good timing to explore change of residence and maybe acquiring a new residence in Hong Kong to enjoy business freedom in a low tax environment.
Contact Us to understand the effect of the CRS on your personal situation