HK Income Tax

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  1. #1

    HK Income Tax

    I'm new to HK so hope you can help. Just want to figure out how much I should save per month so that I'll have money when the time comes to pay tax.

    If my salary is HKD45,000/month, rent is HKD17,000/month, how much tax will I have to pay per month?

    I'm an expat from UK living in HK.


  2. #2

  3. #3

    Join Date
    Apr 2005
    Posts
    250

    go here

    http://www.ird.gov.hk/eng/ese/pa_com..._06/pacfrm.htm
    (or here: http://www.ird.gov.hk/eng/ese/ind_stc.htm)

    looks like you should save roughly HK$6500 per month of your salary for taxes.


  4. #4

    Join Date
    Jul 2005
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    Texas
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    How do you factor in if your company pays for the housing? It is not a straight addition to your income is it?


  5. #5

    Join Date
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    Correct. If the company simply gives you use of an apartment then it has a taxable value of 10% of your salary (regardless of the value of the property they give you). http://www.ird.gov.hk/eng/faq/ctr.htm#a15


  6. #6

    Join Date
    Jul 2005
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    Texas
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    So lets say the salary is 1M annually (as an example), then taxable income is 1.1M?

    Also, when I use the tool on the website it gives back two values. One is standard rate and the other is progressive rate. What is the difference? And which one is applicable?


  7. #7

    Join Date
    Jun 2005
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    Yes to your first question (regardless of how much rent the company actually pays).

    You pay the lower of the two values (progressive vs flat).