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Continue Investing in HK after Leaving the Country

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  1. #11

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    Sure you can keep your HK investments. But if you are living in Germany they you will be paying German income tax on any HKD income received in HK on those investments.

    I'm currently considering to move to Australia, but keep working remotely for my HK employer and receiving a HKD salary into my HK account. Now I live in HK, I pay HK taxes which are around 15%. If I move to Australia, I will need to pay Australian taxes on this income which is up to 45%. So I'm going to be a lot worse off financially. Luckily there is double tax treaty between HK and Australia which means I will not be paying 60% tax (15% + 45%), but I still have to pay the higher of the two which is 45% (15% to HK government and then this can offset what I pay to Aus government so I only have to pay 30% tax in Aus). But still overall I'm going to be paying 45% tax on my HK income next year which sucks but at least I will get Australian medicare and other benefits, and my kids will be able to go to an Australian government school. So I'm almost ready to pull the trigger.

    shri likes this.

  2. #12
    Quote Originally Posted by Morrison:
    That does not answer the other point which you raised here.

    And what's your definition of tax ?
    Tax on what ?
    I wasn't referring to taxation in my initial question. I was wondering if it is legal to have investments in HK after my residence permit expires...

  3. #13

    @bdw yeah i get the point now regarding the issue with tax residency. Didn't consider that before.

    Good luck with your transition to Australia! It's a more pleasant environment for kids IMO


  4. #14

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    Original Post Deleted
    To be honest I am not sure. If I keep my HK job/salary as is now but reside in Australia, fly to HK for one week every month, the remaining three weeks a month working from home in Aus, then I thought I would still be liable for HK tax, and at the same time I would be liable to start paying Aussie taxes on the HK income too.

    Maybe I can claim a HK deduction if I am outside HK for more than half the time, is this what you are referring to and I can avoid HK taxes altogether if I am mainly residing outside HK? But for me this would overall be pointless, because the double tax treaty between HK and Australia means the less tax I pay in HK, the more I would have to pay in Australia. Basically I have to pay Australian tax rates and cannot avoid this, it's just a case of whether I pay 15% to HK and 30% to Aus, or nothing to HK and 45% to Aus, or something in between. Either way I am getting screwed the same amount.

  5. #15

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    Quote Originally Posted by bdw:
    To be honest I am not sure. If I keep my HK job/salary as is now but reside in Australia, fly to HK for one week every month, the remaining three weeks a month working from home in Aus, then I thought I would still be liable for HK tax, and at the same time I would be liable to start paying Aussie taxes on the HK income too.

    Maybe I can claim a HK deduction if I am outside HK for more than half the time, is this what you are referring to and I can avoid HK taxes altogether if I am mainly residing outside HK? But for me this would overall be pointless, because the double tax treaty between HK and Australia means the less tax I pay in HK, the more I would have to pay in Australia. Basically I have to pay Australian tax rates and cannot avoid this, it's just a case of whether I pay 15% to HK and 30% to Aus, or nothing to HK and 45% to Aus, or something in between. Either way I am getting screwed the same amount.
    That's great, that's really great.
    However, taxation of investment income is different.

  6. #16

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    Quote Originally Posted by Morrison:
    However, taxation of investment income is different.
    Well that's up to the laws of the country you are residing in. The OP from Germany and not sure their laws. But for me, if I move to Australia, there is no difference between investment income and employment income. eg If I earn $50k salary from a HK company, or I receive $50k in rent from my HK property that I rent out, both are treated as $50k income and if I am living in Australia I will have to pay Australian income tax on these at exactly the same rate. Right now I live in HK so I don't pay any Australian tax, but the second I enter Australian airspace on a one way ticket then I have to start paying Aussie taxes on all this HK income regardless of whether its investment or employment.

  7. #17

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    Original Post Deleted
    hmm I still have some research to do on this topic. Also is all hypothetical at the moment since I haven't even asked my company if I can work from home 3 weeks a month yet. That will be an interesting conversation next month, I might end up just resigning and start looking for a normal job in Australia
    wharrison6 likes this.

  8. #18

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    Original Post Deleted
    It's all in my head at the moment. But I can save HK$330k a year in international school fees by sending my family to Aus, will spend around $150k a year on flights hotel if I'm in HK one week a month. So overall saving my company $180k in year and I can still do my job remotely so why would they say no to this? haha we'll see next month when I ask them.
    wharrison6 likes this.