Reinvoicing is the use of a tax haven corporation to act as an intermediary between an onshore business and his customers outside his home country. The profits of this intermediary corporation and the onshore business allow the accumulation of some or all profits on transactions to be accrued to the offshore corporation.

The continuing growth of world trade over recent years has led to greater centralisation of operational functions within a business, and companies are creating commercial "hub" to drive these centralised functions. Increasingly, businesses are using Hong Kong as such a hub (or reinvoicing centre) to make use of its favorable distribution costs, convenient time zone (especially for trading with China and other Asia-Pacific countries), efficient banking system and its lack of exchange control. As one of the world's leading international business centre, reinvoicing centre operating in Hong Kong is a powerful tool in tax planning. With appropriate structuring and arrangement, companies can enjoy favourable tax concessions in Hong Kong.

With appropriate arrangements and structuring, there are following advantages as a whole :-

• NO tax on the tax haven corporation's profits
  
• low taxes (or no tax, subject to final tax assessment by the Tax Authority) if using a Hong Kong company or offshore company with place of business in Hong Kong
• maintain bank accounts in Hong Kong, a city of sound banking system and without exchange control
• manage bank accounts easily via internet
• remain privacy and confidentiality on reinvoicing model
• profits shifting
• low costs of operations
• and more ...