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Hong Kong is not offshore in Russia

2018-03-06

The exclusion of Hong Kong from the list of offshore zones is associated with an order from the Ministry of Finance of Russia on November 2, 2017.

Now, from January 1, 2018, Hong Kong in Russia is not officially an offshore zone. As the professional IT-OFFSHORE specialists clarified, this case is connected with the signing by the parties of the agreement on avoidance of double taxation and prevention of evasion from the tax filter.

IT-OFFSHORE professional specialists specified information that due to the signed agreement, taxes were reduced, in particular 0% income tax and 3% royalty tax.

Reference of professional specialists IT-OFFSHORE: the black list of offshore countries of the Ministry of Finance determines the taxation of Russian companies when dividends are received.

This means that when a corporation is registered in a zone that is on the black list of offshore countries of the Ministry of Finance, a tax of 9% will go into service.

From the fact that Russian citizens withdraw large sums, bypassing taxes, the Ministry of Finance decided to create a so-called black list of offshore zones in Russia. Strict control by Russian tax authorities occurs if it is noticed that the Russian cooperates with one of the countries from the black list of offshore companies in Russia.

Reference of professional IT-OFFSHORE specialists: an auto-exchange of monetary information between Russia and Hong Kong is also planned.

Since the beginning of the third quarter of last year, the financial institutions of Hong Kong began to identify and collect data on the accounts of residents of Russia. But the OECD website does not disclose information at this time.

If you have a Hong Kong company or you are looking for alternative solutions, professional competent IT-OFFSHORE specialists will help you by using the convenient way of communication.