Selling shares of a Hong Kong offshore company

One should pay attention to the fact that Hong Kong withdraws the Stamp Duty, a certain tax on the amount of an offshore company’s shares sold. The duty is calculated as 0.1% from the sale and purchase value or a face value of the shares, whichever is higher.

The tax can be avoided if the companies involved are related to each other, which, for example, might come up as a result of reorganisation.