Like Tree6Likes

Tax reduction for 19/20

Reply
Page 2 of 3 FirstFirst 1 2 3 LastLast
  1. #11

    Join Date
    Oct 2006
    Location
    Hong Kong
    Posts
    13,687

    Has anyone taken up government offer to stagger loan payments? I remember something announced during the protests but can't remember what was put into place.


  2. #12

    Join Date
    Feb 2020
    Posts
    7
    Quote Originally Posted by bdw
    Well, if you are going to do it or not, there is a 6 week clock ticking down and March 31st is the deadline for this year if you want an instant $10k reduction in your tax bill for this year sign up for the TVC now!!

    In my opinion, if your taxable income (after married person/child allowance and all that shit) is over $200k per year (which is a low threshold), expat or planning to leave HK in the next 10 years, its a no-brainer and if you don't do it you are throwing away a $10k gift.
    Does "Leaving Hong Kong" require a renouncement of HK passport? I plan to go back to US in a few years and have both HK and US passports, wondering what the requirements are to get the TVC balance out. Thanks

  3. #13

    Join Date
    Jul 2004
    Posts
    3,343
    Does "Leaving Hong Kong" require a renouncement of HK passport?
    No, do you know any country that require such thing??

    wondering what the requirements are to get the TVC balance out
    You need to fill in form and declare you are leaving HK for good and settled your tax etc.. Many threads on this from people leaving HK with proper procedure explained..

  4. #14

    Join Date
    Feb 2020
    Posts
    7
    Quote Originally Posted by nivantj
    No, do you know any country that require such thing??



    You need to fill in form and declare you are leaving HK for good and settled your tax etc.. Many threads on this from people leaving HK with proper procedure explained..
    Thank you for your response!

  5. #15

    Join Date
    Aug 2017
    Posts
    435
    Quote Originally Posted by pin
    Don't get me wrong, TVC is great, but I wouldn't say its a no-brainer. What you have to take into account is you'll be investing in the MPF which has very high management fees. The cheapest management fee is 0.75%, which if you go through a normal ETF for pretty much the same product that the MPF provider is offering you (and often just investing the money in that ETF anyway) the fees will be closer to 0.20%.
    For someone leaving it is. Yes there is a 0.75 fee but tax relief on 60,000HKD is 9000HKD. The fee would only be 450HKD.

    By the way - does anyone know. Is the 0.75 % charged on a daily/week/month/yearly basis. If you only had the 60000 in there for 5 months what would be the charge?

  6. #16

    Join Date
    Jul 2004
    Posts
    3,343
    By the way - does anyone know. Is the 0.75 % charged on a daily/week/month/yearly basis. If you only had the 60000 in there for 5 months what would be the charge?
    All fund expense ratios/management fees are yearly, if it was monthly, our MPF value would have been zero or negative by now..

  7. #17

    Join Date
    Nov 2007
    Location
    Wanchai
    Posts
    4,076

    On a related note BDO are calling for a 100% capped at $60,000 HKD tax reduction in next weeks budget.

    That would be nice.


  8. #18

    Join Date
    Aug 2017
    Posts
    435
    Quote Originally Posted by nivantj
    All fund expense ratios/management fees are yearly, if it was monthly, our MPF value would have been zero or negative by now..
    Yes, but what I meant was what would you be charged for a partial year?


    So if you had money in there for 3 months would they charge 25% of the 0.75% annual charge?

  9. #19

    Join Date
    Jul 2004
    Posts
    3,343
    Quote Originally Posted by Pauljoecoe
    Yes, but what I meant was what would you be charged for a partial year?


    So if you had money in there for 3 months would they charge 25% of the 0.75% annual charge?
    How much interest you would be paid for 3 months fixed deposit with 2.25% annual interest rate!! Meaning of % annual charge/rate is same across any form of finance unless explicitly specified monthly/quarterly percentage..

    For simplicity:- If interest/charge is calculated daily, formula is 0.75%/365 (or whatever working days counted), if monthly, its 0.75%/12 and so on...

  10. #20

    Join Date
    Feb 2020
    Posts
    7

    Based on my understanding, and please do correct me if I'm wrong:

    I believe there are multiple fees in these funds. The first one is "joining fee", they take it out of the initial amount.
    For example, if the joining fee is 1%, you put $100 in the fund, you'll only end up purchasing $99 worth of the fund.

    The 2nd is the management fee. I believe they take the daily amount of the fee out of the value of the fund, so you don't actually pay this fee out of pocket.
    For example, if a fund is $100 today, for simplicity sake let's say the fee is 3.65%. If the fund price stays exactly the same tomorrow, the price of the fund will be actually $99.99.

    And then there're the contribution and withdrawal fee and the spread between ask and bid price.


Reply
Page 2 of 3 FirstFirst 1 2 3 LastLast