Salaries Tax - Allowances / Deductions - Carry Over to Subsequent Tax Years

Closed Thread
  1. #1

    Join Date
    Dec 2018
    Posts
    3

    Salaries Tax - Allowances / Deductions - Carry Over to Subsequent Tax Years

    Seeking any experience / validation or otherwise of the below issue:

    PwC's personal tax summary (ref below / same as the top of the Taxes forum sticky post) includes the statement:

    In rare cases where the total amount of allowable deductions exceeds the assessable income of an individual taxpayer in any year of assessment, the excess can be carried forward indefinitely to set off against the taxpayer’s assessable income in subsequent years of assessment.
    Has anyone obtained such carry forward for the more vanilla of either 1) Allowances (such as dependent parent, noting the above states deductions whether specifically or not) or 2) Deductions (voluntary qualifying MPF)

    Any input welcomed - thanks

    https://taxsummaries.pwc.com/hong-ko...ersonal-income


  2. #2

    Join Date
    Dec 2002
    Location
    薄扶林
    Posts
    48,152

    Am not aware of this ... have not seen this in their tax rules (that I have read) either. Will have to dig in and take a look.


  3. #3

    Join Date
    Nov 2005
    Location
    Cramped island
    Posts
    5,640

    why is that so rare.. i am sure first year most people starting work for say 3 or 4 months could have more deductible than income .. they don't pro-rate the deductible against your working dates...


  4. #4

    Join Date
    Apr 2019
    Location
    island east
    Posts
    457

    For somebody that joined in 2018, expecting to carry forward 4 years of deductions is quite a lot...
    maybe first year.
    Then again, if you have 4 grandparents @ 50k, 9 children @ 120k each, married couple @264k you could get $1.54m of tax deductions. Though, I don't know how on earth you could support a family of 15 on $1.5m...

    Not sure how on earth somebody would get a visa if they bring all sorts of family members and have zero taxable income...

    fwiw, my reading is allowance is not a deduction.. You didn't generate an expense deduction for children, family, etc. it drops the taxable income for that financial year.

    There seems to be a cap of $318k for 'deductions' per year. But $100k for self education, and $100k for elder care is quite a lot. Maybe you gave away a 1/3 of your income to charity? And another $100k for rent. Maybe another $60k for TVC.

    Best to ask a tax agent, or IRD themselves.