Like Tree1Likes
  • 1 Post By MandM!

IANG and tax for contractor work

Reply
  1. #1

    Join Date
    Dec 2018
    Posts
    2

    IANG and tax for contractor work

    Hi,

    I've graduated from HK university in 2017, received IANG extension, and found a company that was not ready to employ me at that time, but we agreed for a contractor thing. I would just issue them invoice as a private contractor (didn't have any company set up). About 180K HKD total.
    After 6 months same company employed me full-time.

    Now I start to freak out about those first 6 months as I don't understand if I were allowed to work as a private contractor or not.
    Can someone clarify this to me?
    It's going to be my first time paying taxes in HK.

    Thanks, any help appreciated.


  2. #2

    Join Date
    Feb 2011
    Location
    Hong Kong
    Posts
    6,330

    The work was technically illegal unless you had an immigration visa that allowed it. In most cases like this, the company sets you up as a contractor to "try" to avoid their illegal employment, and then they usually do not report the earnings since it was illegal employment. You simply need to make sure you get the tax form from the employer so your tax form can match the same amount, to avoid red flags. If your employer doesn't report those earnings and you do, I'm not sure if anyone would ask why your earnings do not match the official record or not.


  3. #3

    Join Date
    Feb 2011
    Location
    Hong Kong
    Posts
    6,330

    If you were on a IANG visa, then seems your employment was legal. Then just make sure your tax record and the company's form matches.


  4. #4

    Join Date
    Dec 2018
    Posts
    2

    Thank you very much for your answer!

    Yes, I was on my IANG visa at a time I was contracting, so I was legally allowed to work.
    I just wasn't sure if I was allowed to work as a private contractor under IANG visa.

    I'll check with my employer, pretty sure they would report paying those invoices.
    Thank you for a recommendation!


  5. #5

    Join Date
    Feb 2011
    Location
    Hong Kong
    Posts
    6,330

    IANG as I believe it allows you to work for any employer. Never heard of it making a difference if you are a contractor or employee. It would just affects your rights as an employee or contractor. Taxes should be the same, in theory.

    ma49 likes this.