I've just received now in May a bonus from my HK company for work related to the 2019 calendar year. But I don't work for the HK branch anymore, I work for the Australian branch of same company. So now HK branch has notified the HK IRD, IRD told them to withhold my bonus and recalculated my income from previous year (after I already settled my taxes last December), and now issued me a new tax demand notice trying to rip a bit more money out of me before they issue a release letter to my company who will then pay my bonus.
Does this sound right? A bonus paid in May 2020 would normally be taxed in 2020/21 financial year, right? But since I left company last year they backdate it to 2019/20 year?
If I could have this bonus assesed in 2020/21 year I would be laughing. Since I dont have income in HK anymore, this would be my only income for the year and tax payable would be low. But the way it is now, backdating it to last year, means I lose around 15% of it in taxes.
I guesss this is just the way it works? I've got to do an online bank transfer now to IRD for 15% of my bonus before my company will pay out.