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Acquiring a HK company
Acquiring an existing Hong Kong company
Where a Mainland enterprise acquires shares in a Hong Kong holding company, the buyer is a potential withholding agent: if the target derives its value mainly from taxable Mainland property and the arrangement lacks reasonable commercial purpose, the indirect-transfer rules bite (SAT Announcement [2015] No. 7, treated as a direct transfer, generally 10% withholding). Deal documents must carry tax provisions.
Case-specific decisions differ — book a consultation with our advisers.
The content of this page is general professional information and does not constitute tax, legal or investment advice. For specific cases, please consult a Hong Kong practising accountant or tax adviser, or refer to official publications of the IRD / SFC / HKMA / CR.