Structuring

Most businesses conduct their affairs across borders. As the tax systems and enforcement varies from country to country it is imperative to plan in advance in order to avoid unnecessary problems. We are able to coordinate practical and seamless advice that covers multiple jurisdictions.

Examples of where we can assist in establishing appropriate structures include:

• Assistance with establishing a suitable presence, including determining the most appropriate corporate vehicle
• Reviewing residency and permanent establishment issues
• Considering tax exemptions or tax breaks, e.g. the Offshore Fund Exemption in Hong Kong
• Reviewing the efficiency and effectiveness of structures, especially given the aggressive attitudes taken within Asia to tax treaty planning. For example, in reference to China, the issue of Circular 601 issued in 2009 regarding beneficial ownership under tax treaties in relation to withholding tax on dividends, interest and royalties. As a result of this and other anti-avoidance measures it is imperative to ensure that any holding structure has substance
• Considering appropriate holding structures. Again, in relation to China, the issue of Circular 698 issued in 2009 on the tax treatment of indirect share transfers under which there can be a China tax liability on any gain made which involves the sale of an underlying company. For example, the sale of a Hong Kong company that has a Chinese subsidiary

For further information please contact Gary James or Winnie Tsui in our Hong Kong office.