Hong Kong Offshore Vs Singapore Offshore

[olsen]

I have investigated the options for registering an offshore limited company in both Hong Kong and Singapore trying to save some tax money doing business in Thailand.

I like the idea of 0% tax in Hong Kong for businesses that do not work there but only have an incooperated company there doing business in Thailand and abroad.

But my partner says Hong Kong banks now has made it more difficult to transfer money outside of the country so he suggest we register the company in Singapore where the tax rate is 17%.

I would like to know if anyone here have any experience with this?

And what company do you recommend setting up a Hong Kong or Singapore offshore company and bank account?

There are tons of links on Google, but I don't know any of them and don't want to get my arse burned ;-)

Thanks in advance ;-)

[Naam]

advice deleted. OP does not need any advice. he and his partner know it all.

Edited March 5, 2012 by Naam

[falang07]

but other users might want to know, too

[mindo]

This is a good thread and i will also be interested in any input from knowlegdeable posters

[KHR1010]

I have registered companies in both countries, for more than 10 years now. HK is by far easier and cheaper to set-up your company, and to maintain your registration and documentation. As for HK banks not allowing you to transfer money, I have not experienced this. I use HSBC, Standard Charter and RBS, I transfer money in and out weekly around the world with no issues.

[mark5335]

I prefer HK to Singapore, primarily because Singapore requires that you have a resident director which adds to the annuals costs (if you have to pay a lawyer/accountant to act as your resident director). I ended up incorporating an offshore company in Labuan Malaysia which was quick and easy, however, the bank account offerings there are less attractive than those available in HK.

[Naam]

This is a good thread and i will also be interested in any input from knowlegdeable posters

[olsen]

This is a good thread and i will also be interested in any input from knowlegdeable posters

http://www.thaivisa....o-minimize-tax/

Thanks for the link Naam, but I find that this thread contains more questions than answers ;-)

[olsen]

I have registered companies in both countries, for more than 10 years now. HK is by far easier and cheaper to set-up your company, and to maintain your registration and documentation. As for HK banks not allowing you to transfer money, I have not experienced this. I use HSBC, Standard Charter and RBS, I transfer money in and out weekly around the world with no issues.

Sounds interesting...what agency did you use to set up your Hong Kong Company and bank account?

You are also welcome to PM me ;-) Thanks.

[chainarong]

Be carefull as both countries have now signed international treaties , they still make out they are off shore, but they are not, eg if USA/GB/Aussie/Nz want to check any accounts that you may have, they will hand over all details, being off shore creates more problems these days than its worth and remember transferring money into Thailand will make them also to start looking.

[Naam]

Be carefull as both countries have now signed international treaties , they still make out they are off shore, but they are not, eg if USA/GB/Aussie/Nz want to check any accounts that you may have, they will hand over all details, being off shore creates more problems these days than its worth and remember transferring money into Thailand will make them also to start looking.

i am living since years in Thailand, need money to live in Thailand and therefore transfer money since years to Thailand. why should that make "them" or anybody "start looking" or (as you imply) the shit hit the fan?

[chainarong]

Be carefull as both countries have now signed international treaties , they still make out they are off shore, but they are not, eg if USA/GB/Aussie/Nz want to check any accounts that you may have, they will hand over all details, being off shore creates more problems these days than its worth and remember transferring money into Thailand will make them also to start looking.

i am living since years in Thailand, need money to live in Thailand and therefore transfer money since years to Thailand. why should that make "them" or anybody "start looking" or (as you imply) the shit hit the fan?

You seem hell bent on offshore, go ahead, the good ride wont last forever, good luck.

[Naam]

Be carefull as both countries have now signed international treaties , they still make out they are off shore, but they are not, eg if USA/GB/Aussie/Nz want to check any accounts that you may have, they will hand over all details, being off shore creates more problems these days than its worth and remember transferring money into Thailand will make them also to start looking.

i am living since years in Thailand, need money to live in Thailand and therefore transfer money since years to Thailand. why should that make "them" or anybody "start looking" or (as you imply) the shit hit the fan?

You seem hell bent on offshore, go ahead, the good ride wont last forever, good luck.

and you don't seem to have the slightest idea what "offshore" means. for example, if i transfer money from my home country (as do thousands of expats in Thailand) that transfer is from offshore and "them" will not "start looking".

no international treaties have been signed by Hong Kong or Singapore to hand over any financial details of banking clients or let foreign authorities check any accounts unless there is supporting evidence on terrorist financing or drug money laundering. but it is only a matter of time when tax fraud/evasion will be considered a criminal offense and cause problems for the delinquents. Singapore has announced already a change in legislation which however does not bother anybody who pays his/her due taxes or lives as retiree income tax free in Thailand and is not taxed by his home country because he is a non-resident. the latter does of course not apply to the poor souls who's home country demands taxes no matter where they live.

[Soutpeel]

Be carefull as both countries have now signed international treaties , they still make out they are off shore, but they are not, eg if USA/GB/Aussie/Nz want to check any accounts that you may have, they will hand over all details, being off shore creates more problems these days than its worth and remember transferring money into Thailand will make them also to start looking.

i am living since years in Thailand, need money to live in Thailand and therefore transfer money since years to Thailand. why should that make "them" or anybody "start looking" or (as you imply) the shit hit the fan?

You seem hell bent on offshore, go ahead, the good ride wont last forever, good luck.

and you don't seem to have the slightest idea what "offshore" means. for example, if i transfer money from my home country (as do thousands of expats in Thailand) that transfer is from offshore and "them" will not "start looking".

no international treaties have been signed by Hong Kong or Singapore to hand over any financial details of banking clients or let foreign authorities check any accounts unless there is supporting evidence on terrorist financing or drug money laundering. but it is only a matter of time when tax fraud/evasion will be considered a criminal offense and cause problems for the delinquents. Singapore has announced already a change in legislation which however does not bother anybody who pays his/her due taxes or lives as retiree income tax free in Thailand and is not taxed by his home country because he is a non-resident. the latter does of course not apply to the poor souls who's home country demands taxes no matter where they live.

Correct and also understand in the case of Singapore a court order has to issued before any details are handed over

[Soutpeel]

Be carefull as both countries have now signed international treaties , they still make out they are off shore, but they are not, eg if USA/GB/Aussie/Nz want to check any accounts that you may have, they will hand over all details, being off shore creates more problems these days than its worth and remember transferring money into Thailand will make them also to start looking.

your talking rubbish

[fletchsmile]

There's a couple of different issues here, which people are mixing up and talking at cross purposes.

Naam is correct that solely from a banking and fund transfer perspective there aren't any major hassles. He however doesn't run a business and he is not working here

On the other hand OP's post is that he is setting up a company and says:

I like the idea of 0% tax in Hong Kong for businesses that do not work there but only have an incooperated company there doing business in Thailand and abroad.

That has the potential to cause issues. Basically work done in Thailand is taxable here. Paying staff offshore and taking revenue offshore for work they perform in Thailand can likely get you in trouble with the various authorities, particularly tax. There are also immigration implications, and work permits should match the company actually being worked for, so it's not acceptable to have a work permit for a Thai entity but actually do work in the name of HK entity to generate revenue.

Where banks come in, is that there is an increasing trend globally for banks to provide more and more information to countries and their tax authorities as to what is happening with transactions and business. eg the cases where the US government cracks down on foreign banks allowing US citizens to evade worldwide tax - UBS springing to mind as one example. Increasingly there'll be pressure on the banks to provide more info. So it's only a matter of time where people in Thailand evading tax and breaching rules in their use of HK entities start to come on the radar screen more often

Edited March 7, 2012 by fletchsmile

[Naam]

There's a couple of different issues here, which people are mixing up and talking at cross purposes.

Naam is correct that solely from a banking and fund transfer perspective there aren't any major hassles. He however doesn't run a business and he is not working here

my 'rebuttal' did not refer to the opening poster and his hare-brained tax saving scheme but exclusively to

Be carefull as both countries have now signed international treaties , they still make out they are off shore, but they are not, eg if USA/GB/Aussie/Nz want to check any accounts that you may have, they will hand over all details, being off shore creates more problems these days than its worth and remember transferring money into Thailand will make them also to start looking.

[olsen]

Thanks for all the comments...

I asked about the offshore account because I and my partner are setting up a 100% internet based service that can be run from anywhere in the world, but we both like to live in Thailand...but I guess we then have to either relocate to Singapore or pay full tax in Thailand, since we do work from our computers here in this lovely country...

Another issue was that since we deliver an internet based service I would love to have the company's head office in say Singapore since this is a more reputable address than Thailand when it comes to business....

So we were talking about regisering an office there and then just open a representative office here in Thailand.

But it that legal to do?

We will of course pay tax of all the income we get from our "land based" business, but the internet based business will be wired to Singapore where the tax is only 17% compared to 35% in LOS when you earn more than 4 million THB per year.

Guess we will have to check this more carefully, eventually with a Thai lawfirm who do actually also register offshore companies in both Singapore and Hong Kong ;-)

But I just need to know the name of some reputable firm who can do this for us ;-)

[Soutpeel]

So we were talking about regisering an office there and then just open a representative office here in Thailand.

In theroy you may be able to open a representative office in Thailand, but be aware you will need to remit THB 5.0 million over 5 years into Thailand, the first THB 2.0 million needs to be brought in, in the first year and you cant take the money back out either, further the representative office is limited to non-revenue earing activites and there are restrictions on the type of business undertaken...running an internet business may or maynot qualify.

If you are looking at Singapore or HK...would be better retaining the services of legal office in either Singapore or HK as they will know the in's and out's better than a Thai legal company

.

Edited March 8, 2012 by Soutpeel