In its 2021 annual meeting with tax practitioners, the Hong Kong Tax Authority clarified the following issues related to the profits tax:
When a Hong Kong resident enterprise has a “server permanent establishment (PE)” located outside Hong Kong which forms an essential and significant part of its e-commerce business, the Tax Authority has indicated that a part or all of its profits could be regarded as non-taxable offshore Hong Kong profits. The Tax Authority reconfirmed that the location of the …