# IT Contractor - working in HK under my Ltd Co & HK Tax system



## DogChops (Oct 25, 2014)

Hi - I'm not sure if I'm in the right place actually, but we'll see!

I am currently a contractor in the UK under my own limited company.

My wife and I will be moving to Hong Kong at the end of November as she is starting a new job.

My currently client contract will expire on 6th November, but they would like to explore ways in which I can support them from Hong Kong via remote working during the transition to someone else. I'm fine with this.

Options appear to be:

1. Another contract via my UK Ltd.

My client says this would be fine for them, and as long as I have connectivity they are not concerned about my personal location on the planet, be it in the UK or elsewhere.

My accountant says that I need to check what the tax implications are, as I might have to pay another layer of
income tax when I'm in HK.

I understand there is a dual tax treaty between the UK and Hong Kong which might make this less complicated than it sounds to me. Can anyone substantiate this? I am still researching.

I also know the tax rate in Hong Kong is up to around 15%, so this would not be a disaster for a contrct that could be put in place very quickly.

Although I believe I would need to change the address of my UK Ltd, because my wife and I will be renting our house. I can change to a PO Box address, and there appear to be lots of providers of such a service.

2. New contract under an International umbrella company

This seems feasible, and would be relatively easy to set up according to my client, for they would have an agreement with the umbrella co.

Which of these two poses less risk of complications for me? Does anyone have experience of Ltd Co contractnig in HK under their Ltd?

Thanks in advance


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## Capstan (Sep 22, 2015)

I believe Hong Kong does not tax income earned abroad - but you need to ask an international tax specialist how that relates to your specific situation.


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## Freemonti (Nov 10, 2015)

DogChops said:


> Hi - I'm not sure if I'm in the right place actually, but we'll see!
> 
> I am currently a contractor in the UK under my own limited company.
> 
> ...


Suggest you open a Hong Kong Ltd and start invoice your customer from your new Hong Kong ltd. In the end this will save you tax. 
Cost of setting up a Ltd in Hong Kong are below HKD 10K and you do not need to give your self a lot of income, so no income tax. Keep the dividend low, book your cost of living in HKG into your Ltd. <Snip>


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