Third country re-invoicing can in certain circumstances enable the accumulation of profits and protect the confidentiality of commercial arrangements. It can provide better logistics for the transportation of goods and services leading to, lower operating costs, lower tax rates and free movement of funds.
Use of Hong Kong Re-invoicing Companies
Hong Kong is a major financial services centre and offers some of the
lowest or No corporate tax rates among Asia on trading income or
commission income. Many of the world's leading multinational companies
have established trading and Intermediaries operations from Hong Kong
for their international business activities. Hong Kong has an extensive
tax treaty network and a wide range of banking, sourcing , distributing
accounting, legal and other services, an excellent communication
network and no exchange control regulations.
In a re-invoicing operation the Hong Kong company is the contracting party with the supplier as well as with the ultimate buyer.
- Shipments are routed directly from the supplier to the ultimate buyer
- The Hong Kong company substitutes the invoice, adding a margin and handles commercial and banking documents
- Settlement of purchase and sales are monitored through the internet bank accounts of the Hong Kong
- Company either in cash or by other payment methods, i.e. D/P, D/A or negotiation of transferable or back-to-back letters of credit
- Payments can be effected to the client via dividends or offshore arrangements
Both importers and exporters may benefit from the arrangement.
- Handling commercial papers, e.g. re-invoicing and trade documents related services such as handling L/C and shipping documents
- Administration of trading (import and export) transactions
- Handling remittance or fund transfer applications, settlement of trade bills, and related bank accounts handling services
- Maintenance of accounting books and records
In summary, our accounting and trade support services include:
Preparation of periodic and annual accounts and their submission to the relevant authorities according to the requirements of law.