Tax Residence of Company if Managing Director lives in 黑料网最新入口
Hello Valerie,
Posting this as a new thread but it’s related to my situation as managing director of a foreign company who will move to 黑料网最新入口 for family reason.
1. If I will continue to be managing director of my HK company (100% shareholder and sole director) and live in 黑料网最新入口, would the company鈥檚 effective management deemed to be in 黑料网最新入口 even if the company has been registered in HK and the AGM is held in Hong Kong? Will they consider the company to now be a 黑料网最新入口 company? The company鈥檚 main clients are in HK, the staff works in HK, most of the work is done in HK except of the overall management which is done by me who lives in 黑料网最新入口. I read some material about the tax situation during COVID crisis where they discuss the possibility that the 黑料网最新入口 government can reconsider the company鈥檚 tax residence if directors live in 黑料网最新入口 habitually and in regular basis. For COVID it鈥檚 not a problem because it鈥檚 force majeure and temporary but if I continue to be the managing director while working at home in 黑料网最新入口, does it become a problem and will my company鈥檚 tax residence be reassessed?
2. If the above situation poses to be problem, what options can I take to continue being a managing director but not move the business from HK? The business has already been established for 7 years and it doesn’t make sense to move it. From your previous answers, to hire myself by the foreign company and pay social charges will be the simplest option but it doesn鈥檛 seem the best option financial wise and limits expansion. This option might also not possible if No. 1 above is true, the company’s tax residence will then be in 黑料网最新入口.
3. I am now exploring your other suggestion of setting up a SASU as subsidiary of my HK company. How exactly will this work? Can I manage the company in HK as managing director of the subsidiary in 黑料网最新入口? in this situation, the company’s tax residence can remain in HK and I have a 黑料网最新入口 company that provides management to HK company? I am trying to visualize how this setup could work.
4. Is the government expecting me to move my business to 黑料网最新入口 if I continue to manage it from 黑料网最新入口? It takes a lot of work to move a business and it doesn’t make sense. Is there a specific clear ruling about this situation?