Deducting HK Taxes on US Taxes without HK Tax Bill Received

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  1. #1

    Deducting HK Taxes on US Taxes without HK Tax Bill Received

    Is it possible to buy an HK Tax reserve certificate for the taxes you think you will pay in HK in order to deduct foreign taxes on your US return before you actually receive your assessment? My HK return was filed a week ago to the IRD and I'm worried I won't receive a bill before the end of the year and won't be able to deduct the HK taxes against my US taxes.


  2. #2

    Join Date
    Oct 2006
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    Sarcasm - because beating the crap out of people is illegal
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    14,622

    You can buy tax reserve certificates for your Hong Kong taxes at any time. I buy them on a regular basis. Don't know how buying them affects US tax though.


  3. #3

    Join Date
    May 2005
    Location
    Hong Kong, from UK
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    I doubt very much the US authorities will accept "I've saved some money to pay a potential future Hong Kong tax bill" as a deduction...


  4. #4

    Join Date
    Mar 2012
    Posts
    4,821

    But presumably you will be able to offset against next year's taxes, so it's only a cashflow issue.


  5. #5

    If you use a Hong Kong Deferred compensation pension plan then all assets and trades become tax deferred in the U.S. Oh and escapes divorce splitting , Ho Ho , it works by the wAy.