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I haven't paid taxes for 2 years in Hong Kong

  1. #1

    Question I haven't paid taxes for 2 years in Hong Kong

    Hi everyone.

    I have been living in Hong Kong for 2 years and I still haven't paid any taxes here. I am quite worried and I don't want to get in trouble with the IRC. During my first year I had a working holiday visa but people tell me that expats normally don't pay taxes during the first year. I got my work visa next year and I didn't pay any taxes last year so I would like to know what should I do to sort this out. And also I moved to Jordan from YMT last year before starting my job and I want to know if it's the reason why I didn't receive anything in my mailbox.

    Please advise thanks in advance.

  2. #2

    Join Date
    Dec 2002

    Your employer should be filing an employer's return which will let Inland Revenue know how much you've been paid - regardless of being on a work visa or working holiday visa or having been in HK for x number of days / months etc.

    This filing will include the address your employer has on their record and the Inland Revenue will send you the forms to fill up and if applicable send you a demand for taxes. If you're below a certain threshold, you'll get a nice letter letting you know you don't owe them anything.

    There is no such option as "not filing or being exempt from filing a return" as far as I know - I might be wrong and someone might correct me.

    If your address is incorrect, IRD will contact your employer and request them to correct the address - assuming their documents have been returned to them.

    Best to check with your previous employer to see if they did file a tax return on your behalf (chances are they did not, and also did not pay MPF - not sure how this one works for working holiday visa types as those are typically short term jobs).

    Next best thing to do .. go to IRD in Wanchai and ask them - very helpful and generally forgiving as long as you're not obviously trying to screw them over.

    Anyways, this is a rather broad description of the process - may or may not apply to you - best to check and research before you walk into IRD.

    Jeremy1988 likes this.

  3. #3

    Join Date
    Nov 2007

    Your employer should be filing the necessary paper work with the IRD to notify them of your employment in Hong Kong.

    I am fairly sure those on a working holiday visa are not exempt from Tax.

    You should check with your manager/HR in the first instance to see that they have got their papers in order.

    Jeremy1988 likes this.

  4. #4

    Join Date
    Mar 2010

    If your source of income is not taxable, e.g. Dividends ,then there is no need to file

    shri and Jeremy1988 like this.

  5. #5

    I am a HK PR. Many years ago I had a few full time time jobs below $10,000 a month, had MPF, did not receive anything from the government. Asked a few other local workers at that time, same, did not receive anything when their income were low. Asked foreign domestic helpers, did not receive anything except some non tax related mails from the Labour Department.

  6. #6

    Join Date
    Dec 2002

    @lighthse003 - thanks for the hint.

    Found this:

    Do I have to apply to the IRD for a tax return to report my employment income?

    In Hong Kong, most salaries earners do not have to apply to the IRD for a tax
    return. The system of tax returns works like this:

    * Obligation to notify the Commissioner of an employee’s chargeability to
    Salaries Tax:

    f you are liable to Salaries Tax, the obligation to notify is as follows –

    - your employer must notify, and
    - you may have to notify.

    * How does an employer notify chargeability: 3 months after employing you, your employer should have reported on a Form IR56E (the green form) to the IRD (with a copy to you) ­
    - your full name and address,
    - your marital status, and
    - the date of commencement and the terms of your employment.

    Such information will enable our computer to automatically create a tax file in
    your name and to issue a tax return (if necessary) to you normally within 5