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MPF when you leave Hong Kong

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  1. #11

    Join Date
    Aug 2017
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    753
    Quote Originally Posted by traineeinvestor
    I'm not 100% sure, but doesn't your total HK tax bill depend on your total HK income for the tax year (less applicable allowances and deductions)? For individuals, the HK tax year runs from 1 April to 31 March so if you only earn HK taxable income up to mid August you only have 4.5 months of income. Depending on how much you earn and how many allowances you can claim, you might not be paying HK tax at the full rate or possibly no tax at all. If so, then the rationale for making additional TVC is questionable?

    HKSAR Govt Tax Calculator here: https://www.gov.hk/en/residents/taxe...omputation.htm
    Ah, I was forgetting the 132,000 married persons allowance! Yep, probably, won’t pay anything so not point. Thanks. (My wife might though as she earns bucketloads more than me!)

  2. #12

    Join Date
    Feb 2012
    Location
    Park Island, Hong Kong
    Posts
    114
    Quote Originally Posted by Pauljoecoe
    My wife might though as she earns bucketloads more than me!
    Making enough money for TVC to be worth it, and having your wife making bucketloads more sounds great. Congrats on your success! And congrats on not being an American that would have to consider when to get their MPF money with an extraterritorial tax system in mind.

  3. #13
    bdw
    bdw is offline

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    Feb 2009
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    5,809
    Quote Originally Posted by Pauljoecoe
    Ah, I was forgetting the 132,000 married persons allowance! Yep, probably, won’t pay anything so not point. Thanks. (My wife might though as she earns bucketloads more than me!)
    You and your wife probably file joint assessment of your taxes, which means you can claim $120k in TVC and it will reduce both your combined income by $120k. So if your wife still earns bucketloads, there is still an advantage for you to claim the TVC again in this financial year.

  4. #14

    Join Date
    Aug 2017
    Posts
    753
    Quote Originally Posted by bdw
    You and your wife probably file joint assessment of your taxes, which means you can claim $120k in TVC and it will reduce both your combined income by $120k. So if your wife still earns bucketloads, there is still an advantage for you to claim the TVC again in this financial year.
    Oh, is that the case? So if I don't pay any tax this year due to not reaching the tax threshold she will benefit from my TVC?

  5. #15
    bdw
    bdw is offline

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    Feb 2009
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    Quote Originally Posted by Pauljoecoe
    Oh, is that the case? So if I don't pay any tax this year due to not reaching the tax threshold she will benefit from my TVC?
    That is my understanding. Just look at the back of any of your previous years tax returns and doesnt it lump both you and your wife's income into one and then you pay tax on the total combined value? If so, then TVC should work the same way, ie you and your wife can together claim a total deduction of $120k.

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