Hong Kong resident director

Hong Kong resident director

Didn't find your answer?

I act for a company where one of the directors is resident in Hong Kong. He has set up a company in HK and wishes to bill his UK company for management/consultancy work through the HK company as the tax rates are more favourable over there.

My question is whether this would be deemed a salary in the eyes of UK law and he would end up getting taxed twice etc. or can he simply invoice the company from HK, claim CT relief on the amount and be assessed personally in HK.

If anyone could point me in the direction of relevent legislation it would be much appreciated.

Replies (1)

Please login or register to join the discussion.

Euan's picture
By Euan MacLennan
04th Sep 2012 13:48

How could it be salary?

"He has set up a company in HK and wishes to bill his UK company for management/consultancy work through the HK company"

So, the UK company will be incurring management or consultancy fees, which would be tax deductible in the UK.  I am not familiar with HK tax law, but I assume that the HK company would be taxable on the fee income, not the director personally; he would only be personally taxable on what he takes out of his HK company.

Thanks (0)