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When a company carries out onshore and offshore business simultaneously, can use tax computation schedule 2 to split the audited financial statements' detailed income statements into onshore portion and offshore portion.

Then use the net profit/loss of onshore income statements to start the tax adjustment to arrive at the assessable profit / adjusted loss.

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2 Answers

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If in foreign currencies, need to add original currency and exchange rate columns and then arrive at HKD: 

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A better tax planning may use 2 companies to handle on-shore and off-shore business separately because:

for operating expenses, you may always have difficult to allocate a expenses to on-shore portion and off-shore portion. For example, audit fee, how to split it?

Company should have sound policy to clear cut its on-shore portion with its off-shore portion.

answered by (7.5k points)
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