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+86 400 118 5939
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Tel：+86 400 118 5939As a technology capital, Shenzhen actively enriches its electronic product industry chain. Mr. Chen, who has been doing foreign trade business in the Huaqiangbei electronic market for many years, exports a large number of Apple phone accessories to the US market every year. Mr. Chen has his own production factory, and with the operation and sales, the company's operating costs are relatively high. After deducting taxes, the remaining net profit is not much. Hongyuan International Hong Kong company registration consultant Xiao Zhang approached Mr. Chen and gave him some professional advice: the Hong Kong company currently adopts a progressive tax rate, with a profit tax rate of 8.25% for the first 2 million Hong Kong dollars and 16.5% for the portion exceeding 2 million Hong Kong dollars. The advantage of Hong Kong's low tax rate can be used for re export trade. Xiao Zhang suggested that Mr. Chen can establish a subsidiary in Hong Kong under the name of the Shenzhen company. The Hong Kong subsidiary can open a corporate account, and domestic factories can conduct related company transactions with the Hong Kong subsidiary, as well as export tax refunds.
Hongyuan International would like to suggest to Mr. Chen a reasonable export tax avoidance method: for example, if your customer is Company A in the United States and your production cost is 900000 US dollars, selling to American customers would cost 1.5 million US dollars. At this point, Mr. Chen's Hong Kong company will acquire the goods at a minimum price of 1 million yuan, and then resell them to your final American customer, Company A, for 1.5 million yuan. There are two contracts in operation, but the goods from Shenzhen can be directly shipped to the United States. Company A in the United States will pay the payment of 1.5 million yuan to Mr. Chen's Hong Kong company account according to the contract, and Mr. Chen's Hong Kong company will pay the relevant costs and expenses of 1 million yuan to Mr. Chen's Shenzhen company. Because Hong Kong companies are controlled and registered by Shenzhen companies, this structure allows Hong Kong companies to directly transfer US dollars to Shenzhen companies, which automatically convert them into Chinese yuan through the State Administration of Foreign Exchange, avoiding the hassle of converting US dollars into Chinese yuan. At the same time, in terms of taxation, retaining the 500000 yuan profit of Hong Kong companies can greatly reduce tax costs through the processing of some expense documents.
In the end, Mr. Chen adopted Hongyuan International's suggestion and entrusted Hongyuan International to provide a series of services including registering a Hong Kong company, handling overseas investment approvals, annual company audits, and accounting and tax reporting. Now, Mr. Chen's company's profit scale has doubled for two consecutive years.
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Email: info@hyintern.com
Hotline: +86 400 118 5939
