Provisional Tax

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  1. #1

    Join Date
    May 2006
    Location
    Tai Po, NT
    Posts
    27

    Provisional Tax

    Provisional tax =

    What is this? How is it calculated? What's the point?

    Thanks


  2. #2

    Join Date
    Apr 2003
    Posts
    12,383

    Evens out ...

    Calculation: March 06-April 07
    Billed in: Nov 07
    Paid in Jan / March: 08

    By that time you've had close to 2 years worth of salary accumulated.


  3. #3

    Join Date
    Feb 2006
    Location
    Kennedy Town
    Posts
    1,010

    Why do they charge you provisional tax in March, which is based on an estimate (made 1 year earlier) of your salary until March. I mean, why estimate something that happened in the past?

    Wouldn't it be easier for them to use your actual income statement in March, and charge you tax in April?

    Not that I'm complaining, I love tax in HK, just seems kinda odd