Tax sector is the main target of financial strategy and risk management in business operations. Unlike Korean tax law, which comprehensively levies all attributable income listed under the tax law, Hong Kong tax law is based on the "Territorial Source Principle," which levies taxes on income that has a source in Hong Kong. In this sense, due to differences in interpretation between taxpayers and taxation authorities, Hong Kong tax law is considered simpler but could be more complicated than tax laws from other jurisdictions.

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In addition, Hong Kong in general has transparent and predictable tax administration and provides a stable business environment, but the expectation level for compliance requirements is strict with occasionally inspections by the Inland Revenue Department. As the experts on offshore claim, non-taxation based on capital/beneficial transaction judgment, and response to transfer pricing taxation, we have extensive experience in faithfully responding to those enquiries and various written inquiries, as well as on-site inspections to protect our clients’ interests.

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We regularly provide relevant information to our clients for prompt action towards the characteristics and changes of Hong Kong tax law. Also, we provide in-depth advice to derive a reasonable tax strategy by properly understanding the business operation status and analyzing respective tax risks.

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In particular, as tax avoidance is strongly regulated and taxation system related to tax haven countries has been strengthened recently, simply lowering the tax burden in Hong Kong will not help to lower the tax burden on the entire group. We support companies that are planning or operating overseas business based in Hong Kong to analyze the advantages and disadvantages of their investment structures and to establish optimal governance.