Situation:
Nationality: US
Living situation: Thailand
Industry: Social Media Ads
Revenue: 300k/year
Customer region: North Americans (US, Canada)
Before Hong Kong Company:
Before starting a Hong Kong company, he used to have a US LLC which made 100% of his revenue taxable in the US.
He was looking for a better way to save taxes. As an American citizen, he has to pay personal tax even if he is not a resident anymore, but the first USD 100k will not be taxed.
After Hong Kong Company:
Through a Hong Kong company, he did not have to pay any taxes in Hong Kong (offshore tax exemption).
As he did not live in the US, the first USD 100k was also not taxed in the US, and only the USD 200k would be taxed at the end of the day.
