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Moving from HK to Australia but work remotely for HK office

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  1. #1

    Moving from HK to Australia but work remotely for HK office

    Hello, I need some advice. I currently work in HK, and would like to live in Australia -my partner lives there. If my employer doesn't mind me working remotely, is there any way I can avoid the double tax (in HK and Australia)? They do not have an office in Australia.


    Thank you!


  2. #2

    Join Date
    Dec 2014
    Location
    Hong Kong
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    357

    If you are not working in HK, you don't need to pay tax here - check for more details in the Inland Revenue Department website.


  3. #3

    Hi James, thanks for the quick reply.
    Do you know if this true even if I am working for the HK branch office but just working remotely? i.e. if the Hong Kong office can pay my salary into an Australia bank account, then can I avoid paying HK tax?

    I'm not sure if 'working in HK' equals being paid by a HK company.


  4. #4

    Join Date
    Oct 2007
    Posts
    1,896

    You can simply declare that you were not resident in Hong Kong and IRD won't tax you. Where and how they pay you is irrelevant.


  5. #5

    Thanks so much for the reply!
    I will definitely ask them if this is a feasible option.
    Will they have to comply with Australia employment law (e.g. superannuation) or is this not mandatory?
    Apologies for the many questions, I'm trying to understand how complex/ the cons of them having me work remotely from an HR/ cost point of view.



    Quote Originally Posted by er2:
    You can simply declare that you were not resident in Hong Kong and IRD won't tax you. Where and how they pay you is irrelevant.

  6. #6

    I think this arrangement would raise a few eyebrows with Australian immigration and the Australian taxation authority. If you are on a tourist visa to Australia, they will be wondering how you will support yourself. If you are a young and working age person, they will definitely be questioning you about employment and income.

    What is confusing to me is you wanted to avoid double taxes, does it mean you will have proof that you will be working in Australia so you will be paying taxes in Australia? But you also said the company does not have an office in Australia, then you will not be working officially in Australia, thus the raised immigration eyebrows mentioned above.

    Having your income sent to Australia sounds very dicey to me. Officially you will not be working in HK, therefore, no income here and no taxes to be paid. But is your employer not going to declare your salary as corporate expense and you as the recipient?

    Whatever arrangements you make with anyone, don't leave any trace on your cell phone because that's the first thing they check at immigration if they suspect anything. They will also check your computer too. Paper trail is now the electronic trail.

    Explore your options thoroughly before you embark on this adventure. I hope you do get what you want after figuring things out. I hope there will be positive information for you from other responses.


  7. #7

    Thanks for the info and appreciate the questions.

    I have a partner visa already so immigration isn't a problem. This also provides me with full working rights in Australia.

    Migrating to Australia means I will have to pay tax as they will see me as "an Australian resident for tax purposes".
    Australia taxes on worldwide income so if I work remotely in Australia, but am being paid by the company in Hong Kong into any account, I'll definitely have to pay Australia tax anyway, I'm trying to avoid paying HK tax as well. (I'm not trying to avoid paying both as it isn't possible.)

    Thanks for the tip about cell phones!


  8. #8

    "I will definitely ask them if this is a feasible option.
    Will they have to comply with Australia employment law (e.g. superannuation) or is this not mandatory?..."

    First thing first, a very basic question: on what status are you entering Australia? I think the issue here is you and Australia, not so much your company with Australia; that comes later AFTER you have been granted entry by Australian immigration. HK income tax payment is based on what your company declares as its salary payment to its employees. Trust me, they will track you down if there is company record for this expense. All the best.


  9. #9

    I missed your response. I am clear on your immigration status now.

    So the issue now is what your HK company will do about the expenses paid to you. I am curious as to how they are willing to treat it.


  10. #10

    Join Date
    Oct 2007
    Posts
    1,896
    Quote Originally Posted by novitaconnect:
    HK income tax payment is based on what your company declares as its salary payment to its employees. Trust me, they will track you down if there is company record for this expense. All the best.
    HK income tax is based on your tax return - the employer information used for verifying the latter (or estimate it if you fail to file one). And you can state in your return that you weren't resident in Hong Kong. Pretty standard procedure.
    shri likes this.

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