Its time for Tax Assessment

[muzzdang]

You may want to ask your company to split your salary between cash payment and rental reimbursement, the whole company would have to go under that scheme.

That is basically a loophole that saves you quite a bit of tax, see below:

https://assets.kpmg.com/content/dam/...mbursement.pdf

Its different from the max HKD100k per annum tax deduction for domestic rent (which works out to HKD8,333 per month!)

[D.YU]

I have the rental deduction included (thru my company).

I think you guys are still missing my point lol. Yes taxation is "lower" in hk than other countries. However, within HK, there are differences that seem to be unfair, especially for expats.

Meaning, most likely if a local is making the same $ as you, they are likely to paying a lot less taxes due to their eligible deductions.

[Crankshaft]

Get married and have 2 kids. Then you can claim an extra $524,000/year in deductions. Expats can do this too.

And enjoy spending 10x more on raising those two brats than you saved in taxes. Not to mention if your partner is already in a high tax bracket then getting married is useless.

I see the former all the time in my home country. Morons popping out babies to get more grants, but they don't think about the cost of raising them all.

[vmlinuz]

Yes I saw this. But still over 150k in taxes due after filing every eligible deduction lol. While my GF is paying 5 digits...

Its not just the tax amount I am angry about. Its just the deduction eligibilities and requirements are so outdated and unreasonable.

Uh, if you're paying over 150k in taxes after every eligible deduction, you're earning very serious money, and would be absolutely fleeced anywhere else in the developed world. Suck it up and enjoy your tax haven rates!

[Crankshaft]

I have the rental deduction included (thru my company).

I think you guys are still missing my point lol. Yes taxation is "lower" in hk than other countries. However, within HK, there are differences that seem to be unfair, especially for expats.

Meaning, most likely if a local is making the same $ as you, they are likely to paying a lot less taxes due to their eligible deductions.

I'm not too fussed about it. It's not my country, so I don't feel entitled to everything the locals get. I have a choice to go back to where I came from, where it's worse.

If you are paying 150k in tax then you are doing fine. Stop thinking about it - it is what it is. Be glad the tax rate is so low and the money actually gets used what it's meant for. Where I'm from you pay a crap load of tax and the useless fat fucks in gov steal everything.

[freeier]

If it is any consolation, claim 100k rental deduction starting from this year and enjoy 17% (+17% on provisional) if you are in final bracket.. Even if not, you will pay nill to small tax compared to last year, cheer up...

if he is already doing the rental reimbursement scheme then this 100k rental deduction no longer applies as i read the guide..

[jimbo_jones]

She has two sets of parents? Or am i missing something?

https://www.gov.hk/en/residents/taxe...ces/7years.htm

Maybe two parents and two grand parents = 200k.

OP can bring his parents to HK and enjoy $100k tax deduction threshold, at most $17k of tax savings. I'm sure it's going to cost way more than $17k per annum to look after your parents in HK, even for 184 days a year... Flying them back home would cost a bomb, unless they are in Thailand or something like that.

[7jai]

Yes I saw this. But still over 150k in taxes due after filing every eligible deduction lol. While my GF is paying 5 digits...

Its not just the tax amount I am angry about. Its just the deduction eligibilities and requirements are so outdated and unreasonable.

Earn less money?

[7jai]

Maybe two parents and two grand parents = 200k.

OP can bring his parents to HK and enjoy $100k tax deduction threshold, at most $17k of tax savings. I'm sure it's going to cost way more than $17k per annum to look after your parents in HK, even for 184 days a year... Flying them back home would cost a bomb, unless they are in Thailand or something like that.

If you are married, I believe you can claim your "in-laws" as well. Which means you can claim both your own parents and your wife's parents (assuming she didn't already claim her parents already).

[7jai]

One of the most prosecuted case by the IRD is falsifying dependent parent allowance

https://www.ird.gov.hk/eng/ppr/pca.htm

No surprise to this point. However what I am surprised about is that the list is so short...... 7M+ people in HK and we are saying 99.9% of them are not "falsifying" these details? hmm..