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  • 2 Post By freetaxadvice

Director fee taxation for non-residents

  1. #1

    Join Date
    Feb 2004
    Kwun Tong

    Post Director fee taxation for non-residents

    I own a limited company in Hong Kong which should have tax-exempt status once I apply for it, but I'm based in Thailand and tax-resident there.

    If I pay myself a director fee to my personal bank account in Hong Kong would I be liable to taxes in Hong Kong? Or at least would I have to file paperwork? The amount would likely be under the personal tax allowance.

  2. #2

    Join Date
    Jan 2020

    If the tax-exempt status of your company has been approved by Inland Revenue Department, then the best tax efficient way to get paid is through repatriating dividend in your case. The dividend is a tax exempted income in Hong Kong for individual tax payer, so you will not need to report it in the individual tax return (if any). Please note the dividend can be withdrawn only from the after tax profits of a company.

    Back to your question, if you receive a director fee, it's a taxable income and such income should definitely be reported in an individual tax return in HK regardless whether the total amount is less than the personal allowance or not.

    Hope this helps.

    shri and traineeinvestor like this.