taxation question for the trainee

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  1. #1

    Join Date
    Apr 2009
    Location
    Hong Kong
    Posts
    14

    Lightbulb taxation question for the trainee

    Hello,

    I get salary from Middle East where tax = 0.
    Salary is transferred to EU bank where I hold passport.
    I even do not have a bank account in HK.
    I am for 1 year in HK as trainee to learn things.
    I have HK ID as trainee for 1 year.

    Questions

    1. Do I need to fill out tax forms?
    2. Should I pay tax in HK (as I have HK ID card)?
    3. Do I need to provide my salary details, banking details to tax authority in HK (how about privacy)?

    Thank you!


  2. #2

    Join Date
    Jun 2005
    Location
    Hong Kong
    Posts
    23,205

    1. Yes
    2. Yes
    3. Yes


  3. #3

    Join Date
    Aug 2005
    Location
    Clear Water Bay (In Da Jungle)
    Posts
    9,968

    u can run but u cant hide, the tax man will get u.


  4. #4

    Join Date
    Jul 2009
    Posts
    1,362

    1. Likely, as your employer will be required to fill out the employer's return which will trigger an individual tax return to be sent to you.

    2. You are likely to have your income considered (i.e. chargeable) for HK tax. If you earn over HK$108,000 in a tax year, 1 April to following 31 March, then yes you need to pay tax. However, if you are only here for one year and if you are coming now or soon, then your tax is likely to be lower than if you were permanently working here and in fact, you may not need to pay tax until you leave when you need to obtain tax clearance. Possessing a HKID Card is not relevant to salary tax liability.

    3. The only information you need to provide is usually what is stated in your employer's return which states all payments made to you as an employee for services rendered. Bank details and so forth are not required unless requested, typically if you are making a tax exemption application. If you are rendering employment services in Hong Kong (and typically this covers employment training provided by the employer) then yes, your payments would be related to employment services rendered in Hong Kong. Depending on whether your employment is deemed Hong Kong sourced, you may be eligible to make a days in days out exemption claim which means you only pay tax on the time you spend in Hong Kong.

    Last edited by ray98; 01-09-2009 at 11:20 PM.