A close family member is currently a full time employee of a company of HK. With the concurrence of his employer, he engages in part-time work.
It is a long (happy) story, but the income from both ends has been more lucrative than expected for the past 12 months, such that he may be expected to pay the top tax rates as an employee, on top of substantial profits tax for his part-time work.
We know the tax rates (16% max for salaries, 8% for profits up to HKD2,000,000).
What we are unsure about is whether there is any interplay between salaries tax and profits tax in HK, such that if you hit the top rates for either, the Government starts charging you the higher rate overall for both salaries and profits? For eg, is it possible that because he is paying 16% for his salary income, he would somehow be made to pay also 16% or a rate higher than 8% for his profits?
Would greatly appreciate any expert insight on this.