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I am a permanent Hong Kong resident and is planning to open a fashion boutique in the PRC. Will the profit subject to PRC tax or Hong Kong tax?

I am a permanent Hong Kong resident and is planning to open a fashion boutique in the PRC. Will the profit subject to PRC tax or Hong Kong tax?

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Joseph
 

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According to the Inland Revenue Department of HKSAR, assessable profits (or adjusted Loss) are the net profits (or loss) [other than profits (or loss) arising from the sale of capital assets] for the basis period, arising in or derived from Hong Kong, calculated in accordance with the provisions of Part IV of the I.R.O.
Since your source of profit is derived from China you are not subject to the Hong Kong Profit tax.

You have to pay profit tax under China’s tax laws for your retail fashion shop in the PRC.

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BMI
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