e-migrator

Hello to all,

I am planning to move to a place with a warmer climate, weather- and tax-wise One of my favourites is HK. I am not and am not planning to be gainfully employed. What I am doing is trading on the US (not HK) stock market to obtain capital gains. Now one of the major criteria for choosing my destination where I would be fiscally resident is of course the taxation of these gains. The information I have about HK is contradictory:

I would not incorporate, but trade in my own name, and only my own funds. However, there may be a dozen transactions a day, and all of them similar in nature. Would the IRD deem my trading to be a profession, trade or business and subject my gains to profits tax?

Many thanks in advance!

gumtree

Don't think you need to pay any CGT in Hong Kong. Dozen transactions a day is not that frequent. Consideration will also be given to transaction amount.

e-migrator

Hm, kind of a twilight zone then I will probably be safer in a true "tax haven".

hong_konger

How do you intend to gain the right to stay / live in Hong Kong ? Will you stay on a tourist visa ? If your only form of income is through such trading then you are almost certainly going to be considered to be operating as a business.

If you are then you will be subject to income tax. You may also be prosecuted for carrying out a business without registering it in compliance with the Companies Ordinance and also for working illegally (without a work permit) under the Immigration Ordinance.

e-migrator

Good point. I was actually thinking of the Capital Investment Entrant Scheme. I never thought of investing my own funds as a business. I mean, I do no advertising, I do not trade in the name of a company (but in my own), I have no clients, I do not invest other people's monies. But I understand that the IRD may take a different stance