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First time doing taxes in HK

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  1. #1

    Join Date
    Feb 2017
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    First time doing taxes in HK

    Hi All,

    This is my first time doing the taxes here in Hong Kong. I have a few questions to ask:

    1) During 2016 I have been employed as an Intern in HK with a Bank at around 20K a month (need to calculate the full amount). Does this go in Section 4.1 Salaries Tax - Income?

    2) From Jan 2017 I am fully employed by another company and I have been using the rental reimbursement scheme. How do I calculate the "total value of ALL places of residence provided"? Should I just sum up rent paid to the landlord from date of employment to 31st March?

    3) Based on my calculations, if you earned more than 420K a year you should opt for flat 15%, while if less you should go with progressive taxation. How do I choose which one I prefer? Do I need to Tick YES in PART 6 Personal Assessment for flat rate?

    Thanks a lot!


  2. #2

    Join Date
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    Do you have copies of the employer returns? Those should have the numbers that the employers filed with IRD.

    Vix85 likes this.

  3. #3

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    Quote Originally Posted by shri:
    Do you have copies of the employer returns? Those should have the numbers that the employers filed with IRD.
    Hi Shri,

    yes I have that document. Should I simply fill with what they submitted with their numbers then?
    Great that's easy then

    Thanks!

  4. #4
    Quote Originally Posted by Vix85:
    3) Based on my calculations, if you earned more than 420K a year you should opt for flat 15%, while if less you should go with progressive taxation. How do I choose which one I prefer? Do I need to Tick YES in PART 6 Personal Assessment for flat rate?
    Your calculation is wrong. It should be more than that. You do get allowances that get deducted from your total income.

    http://www.ird.gov.hk/eng/pdf/pam61e.pdf

    Personal Assessment is only needed if you own a business and have income charged to profits tax, or you own a property that you rent out.
    Vix85 likes this.

  5. #5

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    Quote Originally Posted by civil_servant:
    Your calculation is wrong. It should be more than that. You do get allowances that get deducted from your total income.

    http://www.ird.gov.hk/eng/pdf/pam61e.pdf

    Personal Assessment is only needed if you own a business and have income charged to profits tax, or you own a property that you rent out.
    Great! I didn't know I had a basic allowance. Anyways I won't tick anything then

  6. #6

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  7. #7

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    Original Post Deleted
    Just applied for eTax! thanks!

  8. #8

    Join Date
    Feb 2011
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    Do it through etax. Usually the employer numbers and details already filled in. Then the etax does the math for you and chooses the cheaper option for you. You will pay two years tax for the first time as they charge you previous year and anticipated for next year. Your tax for this past year will be very low because of the 75% discount up to 20k. Next years will be higher but you can apply for holdover if you anticipate earning less income.


  9. #9

    Join Date
    Feb 2009
    Posts
    8,280

    Oh crap, thanks for reminding me I gotta do my bloody taxes. I got the letter on 2nd May, meaning it's due on 2nd June and I am now officially 3 days late. That's not too bad for me actually. Hk taxes I think are the simplest in the world, but I am the laziest motherfucker in the world and I it doesn't matter how easy it is I'm still going to come on geoexpat.com every year and have a whinge about it.

    shri likes this.

  10. #10

    Join Date
    Apr 2017
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    13
    Quote Originally Posted by Vix85:
    Hi All,

    This is my first time doing the taxes here in Hong Kong. I have a few questions to ask:

    1) During 2016 I have been employed as an Intern in HK with a Bank at around 20K a month (need to calculate the full amount). Does this go in Section 4.1 Salaries Tax - Income?

    2) From Jan 2017 I am fully employed by another company and I have been using the rental reimbursement scheme. How do I calculate the "total value of ALL places of residence provided"? Should I just sum up rent paid to the landlord from date of employment to 31st March?

    3) Based on my calculations, if you earned more than 420K a year you should opt for flat 15%, while if less you should go with progressive taxation. How do I choose which one I prefer? Do I need to Tick YES in PART 6 Personal Assessment for flat rate?

    Thanks a lot!
    2) Basically you take your total annual income, minus the total rent from it. Then take 10% of what is remaining and that is the value of your rental reimbursement.

    To give you an example over the year.

    Salary $500k
    Bonus $500k
    Total = $1m

    Rent = $20k.

    So take the total $1m and minus the yearly rent $240k

    Total income is now $760k. And calculate the rental value at 10% of that - $76k. So your total taxable income is now $836k instead of $1m.

    Note: As you have only had the rental reimbursement for 3 months, this will only actually save you money if those 3 months are a higher figure than 10% of your ANNUAL income given 10% of your annual income would be added on as a value as opposed to 10% of the income over the 3 months you received the benefit. So be careful with that or you could end up costing yourself money.
    shri likes this.

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