Hong Kong Taxes

7jai · 12-07-2013, 10:12 AM

Hi guys,

So I've been hearing a lot of rumors about how in your 1st work year in Hong Kong, you do not have to pay income taxes. When the 2nd work year comes along, that's when the gov't will start sending you your income tax letters.

Is this rumor true? Does everyone get 1 year of income taxes waived from the HK gov't? Sounds too good to be true - or am I missing something here?

Thanks guys!

jimbo · 12-07-2013, 10:14 AM

You pay double the following year so not free tax

Trebor · 12-07-2013, 10:24 AM

Ive been here a year and a half and this is what has happened to me so far;

Feb 2012 -Mar 2012 - Started work on 01 Feb 2012 and I received a tax bill a few months ago for a nominal amount due to only working two months and the tax free allowance accounting for most of what i earned.

Apr 2013 -Mar 2013 - I have sent off my tax return but have yet to receive a tax bill.

So in my situation, as I have technically paid my first years tax bill I assume I will just receive a bill for the tax i owe in 2012-13 and they won't bill be in advance for part of my 2013-14 at the same time? Also when am I likely to receive the tax demand considering i sent my return off probably 2+ months ago?

Can anyone confirm this?

7jai · 12-07-2013, 10:26 AM

Originally Posted by jimbo:

You pay double the following year so not free tax

So basically it's "tax deferral", more so than "no income tax for 1st year" then?

1st year - get deffered
2nd year - pay year 1, and year 2's taxes
3rd year - pay year 3 taxes

etc...?

jimbo · 12-07-2013, 10:42 AM

Originally Posted by 7jai:

So basically it's "tax deferral", more so than "no income tax for 1st year" then?

1st year - get deffered
2nd year - pay year 1, and year 2's taxes
3rd year - pay year 3 taxes

etc...?

Yup! That's correct

Trebor · 12-07-2013, 10:47 AM

But can you answer my question? I have effectively paid my first year tax on it's own, albeit a nominal amount.

Gruntfuttock · 12-07-2013, 10:52 AM

Originally Posted by Trebor:

But can you answer my question? I have effectively paid my first year tax on it's own, albeit a nominal amount.

At some point in the next few months you'll get a bill which will cover the final taxes for 2012-13 plus provisional tax for 2013-14. You will be required to pay 75% of the amount due in January 2014 and 25% in April 2014.