3 ways to reduce your overheads

There are a wide variety of business tax regimes around the world. We are not talking about your personal taxation, which depends on your place of residence – if you have one. (Some of us travel so much they are not really resident anywhere, but that itself comes down to national rules about how much you are in-country before you become “resident”.)

Business taxation of course is a matter of where your company is resident. Our Hubconsult Member’s contracts are signed in Hong Kong. This is a great location for Hubconsult as many of our clients are in the Asia region. We also work with international donors such as the Asian Development Bank (ADB) and large contractors based in the region.

Often this means that we can eliminate business tax on these contracts. We just have to charge a 1% admin fee on these contracts. In most cases, the transaction is favourable for VAT purposes too. So the saving you make on your admin costs is further helped by the dramatic improvement to your Profit after Tax (PAT). You can take the Calculate Savings test yourself and enter your own Corporate Tax rate into our Savings Table, so you can see this saving for yourself. The saving in a) business registration b) account maintenance and c) tax costs combined can often generate more than a 25% improvement to PAT. Now that’s good news!

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