HK tax question

[travelchicky]

I've heard that your rent is taken out from what you owe for taxes each year so you owe less is this true? If so does your name have to be on the lease for this to be possible? Any help would be greatly appreciated.

[PDLM]

Not exactly - there is another discussion ongoing on this subject in this thread: http://www.geoexpat.com/forum/showth...381#post102381

[carang]

i wish.....

[travelchicky]

thanks for the help. I looked at the other thread but it all sounds like goobly gook to me.

[PDLM]

I'm not sure how simple I can make this, but I'll have one more go...

The amount of tax you pay can be reduced in some circumstances. Among the requirements are:

- the Housing Allowance (or provision of free housing) must be written into your employment contract

- if you are given an allowance (rather than free housing) then your employer must exercise control that the money is actually spent on housing; this means that the lease must be in your name and the company must hold a copy of the lease and all receipts you get for your rent payments

- there is only a tax benefit if the Housing Allowance is greater than 10% of you other income (including the Housing).

- if the company gives you free housing then that will have a taxable value of 10% of your salary.


In summary, if I understand the gist of your question correctly, if the lease is not in your name then you cannot get any tax reduction.

[penguinsix]

In summary, if I understand the gist of your question correctly, if the lease is not in your name then you cannot get any tax reduction.

I think there are ways around that :-) or so I've experienced, though not sure on the mechanics. My advice would be to talk to your company's HR people and see if they know how it is done.