This agreement between Hong Kong Special Administrative Region and the PRC Tax Department, although entitled as an elimination of tax, is in fact an enabling document which will allow the mainland tax authority to penetrate your tax records and other documents in Hong Kong and will result in a significantly higher tax payment for those doing business on both sides of the PRC/Hong Kong border and using spit personal and corporate earnings recording. In fact, the mainland authorities will collect their much higher rates of tax where such common practices are used.

It is critical that you structure both corporate and personal tax issues with this in mind. We can assist you in developing a favorable structure before you begin so as to avoid this problem in the future. Let us show you the potholes and sand traps and how they might be avoided.