When you decide to register company hongkong, one of the things you need to appreciate and get right is about taxes. While they have simplified the tax regime so much, it is important to get it right on all aspects, especially the common reporting standards (CRS). This is one of the crucial efforts taken by Hong Kong in line with the Convention on Mutual Administrative Assistance in tax matters by OECD. In this post, we will take a closer look at CRS to establish what it is and how to get it right?
What is Hong Kong CRS Framework?
Following the passing of CRS Framework by OECD and the adoption of its resolution by Hong Kong in 2014, the Hong Kong Legislative Council amended the Inland Revenue Department (IRD) laws in 2016. Under the new law, IRD is required to implementing the Automatic Exchange of Financial Information (AEOI) with cooperating countries.
Under the new legislation, every company incorporated in Hong Kong is required to share tax information of reporting accounts to IRD for the purposes of sharing with home countries. This is meant to ensure that people who aim at avoiding paying taxes back at home cannot hide in Hong Kong.
Why You Need Company Formation Services for Compliance with CRS Laws
For Hong Kong, its commitment to CRS was a strategic move aimed at helping to boost the jurisdiction as an economic hub. Hong Kong administration wisely crafted its CRS legal framework and tied it to bilateral engagement with partners. Therefore, every jurisdiction that wants Hong King to share reporting accounts information simply open a new market for companies incorporated in Hong Kong.
Notably, complying with the CRS framework is not a simple task. But working with company formation services in Hong Kong can help to simplify this task in the following ways.
- The company formation services are run by experts who understand the legislation
Most company formation services in Hong Kong have been in the market for long and seen the legislation unfold. Besides, they have experience and will be happy to help you run a compliant business.
- The services will also be helpful in other company operation services
The good thing with company formation services is that they help you to do more, not just to comply with CRS laws. For example, if you work with the company formation services starting from the time of incorporation, it can also help you with the following:
- Hong Kong company incorporation
- Serving as your company secretary
- Serving as your Hong Kong company address
- Filling tax returns
- Helping you to avoid the company and directors bank account termination
One of the dangers of failing to comply with the CRS legal framework is bank account termination. This could mean sudden death to your enterprise. Therefore, the company formation services will help you to carefully identify the areas of action to remain compliant and avoid account termination.
When you decide to register a company Hongkong, it is important to target total compliance, especially on tax matters, by working with company formation services. They have been in the market for years, know what you need, and are willing to help you grow and succeed. With experts on your side, you can never get it wrong!