Thanks - this seems to conflict with what CharSiuNow says though.
How much would I have to pay DeletedUser? 75% of next year and the 7 months from this year? i.e. 50k (7 months - 20k allowance) plus 75k (75% minus 20k allowance), - in total 125k?
Thanks - this seems to conflict with what CharSiuNow says though.
How much would I have to pay DeletedUser? 75% of next year and the 7 months from this year? i.e. 50k (7 months - 20k allowance) plus 75k (75% minus 20k allowance), - in total 125k?
So I will only ever pay tax on money I've already earned?
The Brit is correct - you don’t pay tax on anything unless it was due to you and has been paid and received by you.
There is no PAYE here, you have to earn over your annual personal allowance of HK$132,000 before you start paying tax. Even if you’re only here for one day of a tax year you get the full $132,000 personal allowance for that tax year, so whatever you earned starting September to end of March this year needs to exceed $132,000 before you start paying anything.
You will need to fill in a tax form for the year ended 31 March 2020 from 1 May 2020, then (normally) you will get a tax bill in July - November for a first payment in Jan 2021 and second payment in April 2021. The first payment consists of your tax due (after allowances and deductions) for year ended 31 March 2020 and the estimated tax for 75% of the tax for the year ended 31 March 2021, the payment in April 2021 is 25% of the estimated tax due for the year ended 31 March 2021.
Clear enough?
Thanks very much - all clear now.
That's not what i suggested.
What i am saying is this:
Assuming you come in September 2019, and worked 7mths till Mar 2020.
Total 7 mths. Assuming your tax is as you approximated, 70k in total.
(you will likely be asked to submit tax return around June~August 2020).
You first tax bill will be received in Dec 2020 (assuming IRD working fine this coming year).
The tax demand will likely be:
January 2021: 70k (for FY 19-20) + 75% * 70k (for 3/4 of provisional tax FY 20-21)
April 2021: 25% * 70k (for remaining 1/4 of provisional tax FY 20-21).
In total your tax bill presented to you in Jan 2021 would be 140k (2 x the 70k tax you are liable).
For the following year assuming you tax liabilities never change.
FY 2020-2021 your actual tax liabilities = 120k. And you submit return in Jun/July 2021.
Then your tax bill should be:
Jan 2022: 120k + 75% * 120k - 70K (which you have paid provision in Jan/Apr 2021).
Apr 2022: 25% * 120k
I may be wrong on a general level, but this was my experience.Original Post Deleted
Feel free to ignore that of course.