He is not a resident taxpayer in the Mainland, so he doesn't have to declare and pay taxes every month. If he has taxable behavior, the counterparty who deals with him is responsible for withholding and paying taxes. Therefore, it can be said that Hong Kong companies do not have to pay taxes in person in the Mainland. Secondly, the analysis of mainland companies shows that he is a resident taxpayer, and he has to report to the tax authorities whether he has to pay taxes or not. If the Hong Kong company pays for him, he will have to pay taxes. Therefore, mainland companies must pay taxes. Mainland enterprises are engaged in agency services and pay business tax. There are other taxes that may involve local taxes. Hong Kong companies can't operate directly in the mainland. There are two ways. One is to set up a foreign-invested company in the name of a Hong Kong company to operate in the mainland. The other is to register a Hong Kong trademark in the name of a Hong Kong company and authorize mainland enterprises to act as agents for brand promotion. If you are engaged in trade business, you can do entrepot trade with a mainland company and a Hong Kong company.

Legal Basis

Regulations for the Implementation of the Enterprise Income Tax Law of the People's Republic of China

Article 8

The term "actual connection" as mentioned in Article 3 of the Enterprise Income Tax Law refers to the ownership, creditor's rights, and ownership, management and control of the property obtained by the institutions and places established by non-resident enterprises in China. The calculation of taxable income of an enterprise is based on the accrual basis, which belongs to the income and expenses of the current period. Whether the money is received or not, it is regarded as the income and expenses of the current period, not as the income and expenses of the current period. Even if the money has been received or paid in the current period, it is not regarded as the income and expenses of the current period. Except as otherwise provided by this Ordinance and the competent departments of finance and taxation of the State Council.

the term "loss" as mentioned in article 5 of the enterprise income tax law refers to the amount less than zero after deducting non-taxable income, tax-exempt income and various deductions from the total income of an enterprise in each tax year in accordance with the provisions of the enterprise income tax law and these regulations.

the liquidation income mentioned in article 55 of the enterprise income tax law refers to the realizable value of all assets of an enterprise or the balance after deducting the net asset value, liquidation expenses and related taxes and fees from the transaction price. The remaining assets distributed by the investor enterprise from the liquidated enterprise, which is equivalent to the part that should be distributed from the accumulated undistributed profits and accumulated surplus reserves of the liquidated enterprise, shall be recognized as dividend income; The balance of the remaining assets after deducting the above dividends, which exceeds or is lower than the investment cost, shall be recognized as the income or loss from the transfer of investment assets.