TaxTMI 
TaxTMI 
We are company in Hong Kong who recently provides intellectual property agency services for a Indian co. The invoice we sent incurred our service fee + agency fee which we need to pay to a agent in Taiwan + Offical fee of Trademark application to Taiwan governmnet. Now the Indian co. said they are required to retain 25% of withholding tax when they remit the money to us. As far as i know that HK has no DTA with India, however i am thinking if the cost we incurred (fee paid to Taiwan agent + offical fee to TW gov't) is tax deductible and can we reimburse the expenditure? And if we need to apply a PAN?
Withholding Tax
08 Aug 2013 
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Withholding tax on technical service fees may apply; reimbursements with supporting documents avoid withholding if documented.
Payments to a Hong Kong resident for intellectual property agency services are treated as Fees for Technical Services and subject to withholding at twenty five percent plus applicable surcharge and education cess; absence of a DTAA with Hong Kong means withholding at source applies and obtaining a PAN will not reduce the statutory rate. By contrast, amounts that are genuine reimbursements of third party disbursements (such as fees to a Taiwan agent and official trademark government fees), when supported by original documents and separately invoiced, are not chargeable and need not be withheld. (AI Summary)
Payments to a Hong Kong resident for intellectual property agency services are treated as Fees for Technical Services and subject to withholding at twenty five percent plus applicable surcharge and education cess; absence of a DTAA with Hong Kong means withholding at source applies and obtaining a PAN will not reduce the statutory rate. By contrast, amounts that are genuine reimbursements of third party disbursements (such as fees to a Taiwan agent and official trademark government fees), when supported by original documents and separately invoiced, are not chargeable and need not be withheld. (AI Summary)