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Taxes for the first year in HK

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  1. #11
    fth
    fth is offline

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    It's been a while but

    When I arrived in HK I saved what I owed x2 as my actual payment owed to the IRD got doubled as I had to pay provisional taxes.

    In subsequent years you can ask the IRD to lower the provisional tax if you expect a drop in income. I was going to work on a start up and this was accepted.

    As a foreigner, on leaving employment, usually they withhold your usual salary cheques unless you are not leaving HK. Being a PR is one way, another, which I did, was to sign an undertaking to my employer that I would be managing my own tax affairs directly with the IRD.

    Last edited by fth; 25-10-2015 at 05:21 AM. Reason: Typo

  2. #12

    Join Date
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    There is clearly leeway for employers to withhold tax. IIRC they have to withhold if they have "reason to believe" the employee is leaving Hong Kong. Clearly lots of wiggle room.


  3. #13

    Join Date
    Sep 2015
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    post #8 is correct!

    By law, your employer is obligated to know if you leave HK or not. If so, your employer should withhold certain amount for tax purpose.


  4. #14

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    Jan 2015
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    Hello,

    I arrived in Hong Kong in October 2014 (so have been here 12 months now, on an employment visa). A couple of months ago (around July/August) I received a notification in the post to file my tax return. I filed online, before the deadline.

    I have heard nothing since ... from what I've read in this thread and elsewhere, I should expect to receive a tax bill in the next few months for TWO years worth of taxes, yes? One year actual and the following year provisional?

    If that's correct, when should I expect to receive this?

    Thanks!


  5. #15

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    Quote Originally Posted by VegasDWP
    Hello,

    I arrived in Hong Kong in October 2014 (so have been here 12 months now, on an employment visa). A couple of months ago (around July/August) I received a notification in the post to file my tax return. I filed online, before the deadline.

    I have heard nothing since ... from what I've read in this thread and elsewhere, I should expect to receive a tax bill in the next few months for TWO years worth of taxes, yes? One year actual and the following year provisional?

    If that's correct, when should I expect to receive this?

    Thanks!
    If it makes you feel any better, as you started work in October 2014 you'll only be paying tax on 6 months for the first year as the tax year runs from April 1 to March 31. So it will be 6-month's worth plus the provisional.

    Some people have already had their tax bills. Some haven't. I haven't (efiling), and I had to chase it last year. The first instalment is usually due in January, the second in April.

  6. #16

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    Many thanks for the information - very helpful.


  7. #17

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    Jun 2011
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    I wonder if someone can clarify the prospective tax situation for new arrivals.

    I arrived in September and so by the time March comes around I will have been working for 7 months in HK. Is it the case that I will need to pay 19 months of tax, i.e. those 7 months plus another 12 months for 2020/21?

    If this is the case that seems like quite a lot to front up! I'm surprised I wasn't warned about this by my employers/others.

    Thanks


  8. #18

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    You never have to pay tax up front. You only ever pay tax on earned income.


  9. #19

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    Quote Originally Posted by jamo82
    I wonder if someone can clarify the prospective tax situation for new arrivals.

    I arrived in September and so by the time March comes around I will have been working for 7 months in HK. Is it the case that I will need to pay 19 months of tax, i.e. those 7 months plus another 12 months for 2020/21?

    If this is the case that seems like quite a lot to front up! I'm surprised I wasn't warned about this by my employers/others.

    Thanks
    They don't normally use your 7mth of pay to project what you get over the next 12 mths and ask for forward payment.. i.e. they will likely just use your 7mth pay as the annual income and bill you for 2x that tax.. so for next financial year your payment will be higher as you will be paying for 24mth - 7mth = 17mth of taxes..

  10. #20

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    Quote Originally Posted by freeier
    They don't normally use your 7mth of pay to project what you get over the next 12 mths and ask for forward payment. .
    They never ask for forward payment.

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