Hiring a Consultant using a HK Company

Posted by 50KG (79 days ago)

I want to hire a marketing consultant to work part time for our company to get some exposure for our company in Thailand, Singapore and Malaysia. The person would NOT base in Hong Kong but would have to come to Hong Kong frequently for up to 10 days at a time to meet with our team in HK for training and updates.

Can I hire this person using my HK operating company under the position of Regional Marketing Sales and Marketing Consultant - pay his/her fee to a bank account that is not in Hong Kong (lets say to a private account in Singapore) and NOT be accused by the HK government of employing someone illegally (i.e. without a HK work permit).

Is there something that I should add to the employment contract to protect against any possible problems with the HK government particularly when tax time comes up. The person would not have a substantial salary but we will show it as an expense so they may ask questions.

(I am based in Vietnam)

Posted by ppatio (79 days ago)

If you look at the HK tax code, the answer to your question should be clear: all expenses made in the pursuit of profit are tax deductible.

There is no reason why you cannot hire a person in f.i. Singapore, and pay him a salary. It only becomes an issue when that person moves to HK to work permanently. In that case you would need a work permit. 10 days at a time should, in practical terms, not be a problem. After all, thousands of businessmen visit HK every day to do business i.e. 'do work'.

(I am based in Hong Kong)