Its time for Tax Assessment

[D.YU]

As an expat living in HK, I realized how unreasonable and unfair the tax system is for foreigners.

My GF has deductions for her parents which can deduct 200,000. While she is living with her parents at their flat (fully owned), little to no expenses. She doesnt really need to support her parents.

While for expats, since my parents are living overseas, I am not eligible for any deductions, while I am supporting them heavily.

Want to attract more foreign talents? Fix some of these outdated bs tax deductions. end of rant.

[TheBrit]

LOL, HK already has a very low salary tax, no tax on dividends or capital gains.... it's already very generous... high taxes are not the reason people would stay away from Hong Kong

[bdw]

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

[7jai]

How is that unfair? Your parents are in a foreign country, where they are/have been paying taxes towards that foreign country, and therefore getting the associated benefits relating from that foreign country.

Your own contributions to them is because you are a good son. Why would the Hong Kong government and Hong Kong tax payers be responsible to pay more for your parents who don't live in Hong Kong? If you had gotten that additional tax break, it means less funding for the HK govt to invest back into the HK society where you currently work in.

Seems quite fair to me.

[D.YU]

sorry, let me be more specific.

My parents are originally from HK. They are retired outside of HK without any retirement benefits from HK gov or any gov for that matter. I am covering most of their expenses.

Yes yes, HK is low for taxes. Just my own rant. The deductions for "parents" is simply unjustified if there are no "proof" of them supporting their family. You can deduct more if you are living with your parents (which to me makes even less sense if the place of residence is OWNED by the parents).

[muzzdang]

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

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

[D.YU]

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

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

Ah now that makes it feel more fair...

But even so, the requirement to claim parent as dependent is low. Even if parent is wealthy and fit, most people are eligible to deduct income under parent allowance. And for "proof" you can still be paying your parents 12k a year to deduct up to 100k per parent dependent. Doesnt mean your "parent" is actually needing your supporting.

If your parents are paying for rent, mortgages, unemployed, disabled, etc. it makes more sense... again just my rant.

[GentleGeorge]

My parents are originally from HK. They are retired outside of HK without any retirement benefits from HK gov or any gov for that matter. I am covering most of their expenses.

Tell them to move to the GBA. You can claim the deductions then.

[aw451]

Most people in HK don't pay a single dollar of tax and more than a third live in government subsidised housing.

The middle class carry the largest tax burden and most people who identify as expats are in the middle class. Therefore yes, Hong Kong is very much dependent on expatriates who have no real say. Unfair, yes, but what are you going to do about it?

[Flapster]

Ah now that makes it feel more fair...

But even so, the requirement to claim parent as dependent is low. Even if parent is wealthy and fit, most people are eligible to deduct income under parent allowance. And for "proof" you can still be paying your parents 12k a year to deduct up to 100k per parent dependent. Doesnt mean your "parent" is actually needing your supporting.

If your parents are paying for rent, mortgages, unemployed, disabled, etc. it makes more sense... again just my rant.

There needs to be a line drawn somewhere - what you're proposing is a level of proof - the admin and hassle and expense in administering that would make it pretty unreasonable. There is a line to be drawn and HK has drawn theirs. I think this complaint is pretty thin.