Tax optimization using offshore jurisdiction in Hongkong explained on a real case

International tax planning belongs to a phenomena of recent years. Companies strive to maximize their profits and to cut costs, including their tax burden. One option is to use tax planning schemes involving tax havens to avoid their tax obligations. This diploma thesis demonstrates the example of a particular company which expanded to Hong Kong, and how to increase net profit due to international tax planning. The thesis is divided into four chapters. The first one deals with the theoretical aspects of tax havens and international tax planning. The second part characterizes the territory of Hong Kong focusing on the business environment and tax system. The third section describes the specifics of the company, its business and finance indicators. Particular attention is given to the expansion to Hong Kong. The fourth, the practical part, explains the principles of tax planning between Czech and Hong Kong companies, including an analysis of the tax planning options. Based on the analytic results, specific steps are recommended for how the company can achieve maximum profit by moving the majority of its revenue to Hong Kong.