Inland Revenue/Tax Return

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  1. #1

    Join Date
    Jul 2006
    Posts
    43

    Inland Revenue/Tax Return

    Hi,

    Can anyone point me in the direction of or refer me to a company, person, people who can assist me with completing and submitting my first tax return. We are struggling with some of the questions, especially relating to the payment (by my company) of our serviced apartment when we first arrived. It’s all very confusing and I want to make sure I complete the form correctly.

    Any advice/help would be greatly appreciated!


  2. #2

    Join Date
    Mar 2003
    Location
    HK
    Posts
    1,163

    Why don't you call up the Revenue department hotline. They are quite helpful with the questions.

    http://www.ird.gov.hk/eng/tax/ind_sal.htm


  3. #3

    Join Date
    Jun 2005
    Location
    Hong Kong
    Posts
    23,205

    I've found that if you read the pamphlet, fill in the form as best you can, and write a covering letter with the form which explains what you have done and why, then IRD are very reasonable and helpful. In my experience when I've done this I have always ended up paying less tax than I actually thought I should be!

    The reference document for how salaries tax is calculated on provision of a place of residence is this one:
    http://www.ird.gov.hk/eng/pdf/pam44e.pdf

    Essentially, if your employer provides a place of residence for you then it has a taxable value of 10% of the rest of your income for the period for which it was provided. So if, for example, your employer provided a residence for the first 3 months and during those three months your total income was, say, $300K ($100K/month) then the taxable value of the provision of residence would be $30K (10% of $300K). If you earn enough to be subject to the flat rate of tax (16% this year) then the tax payable on the place of residence would then be 16% of $30K, or $4800.


  4. #4

    Join Date
    Jul 2006
    Posts
    43

    Thanks so much for your help!!