.jpg)
stealing in progress?Have you been doing cross border billings? Of course, you have not. I hope...
For those who are not familiar with it, here is the explanation. Imagine you have a company in China and also a company in Hong Kong. For businesses secured and completed in China, the billing ie. the invoice is issued from the Hong Kong company.
Why?
Apparently many SMEs, with the above set up, are taking advantage of the 9% discrepancy between the corporate tax rates of two countries (Hong Kong 16.5% and China 25%).
They have been booking their mainland's revenue in the lower tax region in Hong Kong.
So can we do the same between Singapore and regional countries? You better not as apparently Chinese and Hong Kong authorities are said to be working together to clamp down on such arrangement.
1 comment:
I was just referring to Mr Sum Yee Loong's Budget Review notes, he did a corporate tax comparison.
Only Hong Kong and Ireland have headline corporate tax (at 16.5% and 12.5% respectively) that would be lower than Singapore's.
So there is your option.
Post a Comment