Taxes in Hong Kong

[RLM]

Dear All,

I was offered an oportunity to work in Hong Kong and, among many things, started thinking about taxes there. I have a couple of questions, as follows:

1) What are the taxes we have to pay in Hong Kong? For example, income taxes, etc...
2) How much (in % over the salary) are/can be such taxes?

Thank you for your kind help!

RLM

[KnowItAll]

http://www.ird.gov.hk/eng/ese/ind_stc.htm

That should give you an idea about what your salaries tax would be -- which is essentially the only tax you should have to pay, as a salaried expat.

There are a number of other taxes.. but they're transactional and/or business related (stamp duties on various property agreements, rates, business registration, etc etc).

[RLM]

Dear KnowItAll,

Thanks for the help!

While looking at the link you sent me, I bumped into a reference to "mandatory contributions to recognized retirement schemes". Are such contributions mandatory even for foreigners coming to work in HK? If so, can they be cashed out when the foreigner leaves HK, back to his country of origin?

Another doubt on taxes: if I have a helper working for me,for one day per week, for instance, are there any taxes I should pay for that, or just the helper's salary?

Sorry for asking so many questions, but I wanted to make sure I covered everything before moving to HK!

[discobay]

RLM, you pay the helper from your already taxed income so there are no further taxes to be applied. You also need to factor in her (his) lodgings, food, days off and air fares.
MPF is here.

[PDLM]

Er, discobay, Is there not a HK$400 oper month Helper Tax in addition to the $3320 DH salary?

[discobay]

For simplicity I preferred not to refer to it as a tax. It's not like you would pay less tax if you underpaid your helper and neither would you pay more likewise.

[PDLM]

Well, OK, but it's a payment that has to be made to the Government whenever you employ a helper, so for budgeting purposes it's pretty similar to a tax even if you may choose to call it something else.

[Expatriate]

so for budgeting purposes it's pretty similar to a tax even if you may choose to call it something else.

It's rather a fine for employing foreign helpers.

[RLM]

Dear Expatriate, PDLM and Discobay,

Thanks for your kind help! It does not seem to be as difficult as I first thought it could be!

All the best to you guys!