02/06/2026
๐๐ฅ๐ข๐๐ง๐ญ๐ฌ ๐จ๐ฏ๐๐ซ๐ฌ๐๐๐ฌ = ๐๐๐๐ข๐ง๐ข๐ญ๐๐ฅ๐ฒ ๐จ๐๐๐ฌ๐ก๐จ๐ซ๐? ๐๐๐ง๐ฒ ๐๐จ๐ง๐ ๐๐จ๐ง๐ ๐๐จ๐ฆ๐ฉ๐๐ง๐ข๐๐ฌ ๐ ๐๐ญ ๐ฌ๐ญ๐ฎ๐๐ค ๐ก๐๐ซ๐
Offshore profits are not as simple as you think
"Customers aren't in Hong Kong, goods don't enter Hong Kong. Does that definitely mean I can claim offshore status?"
This is a very common misunderstanding among Hong Kong company bosses and CFOs.
We worked with an international trading company. Its customers were in Europe, suppliers in Southeast Asia, and goods never passed through Hong Kong. The boss always believed this was definitely offshore profit.
But after digging deeper, we found that key contract negotiations and signings actually occurred in Hong Kong.
Herein lies the problem.
Hong Kong determines the source of profit not just by looking at where customers are or where goods go. The key point is: Where do the critical activities generating the profit take place?
What typically needs to be considered includes:
1.Where services are provided
2.Where sales contracts are negotiated, signed, and executed
3.Whether operational processes and supporting documents are consistent
Many companies fail not because of their business model, but because of the chain of evidence.
Emails, contracts, process records, and communication habits are often more important than the boss's own judgment.
