Like Tree2Likes

Tax clearance before exiting HK

Reply
Page 1 of 2 1 2 LastLast
  1. #1

    Tax clearance before exiting HK

    Hello,
    I plan on moving out of HK later this year. I have some unvested stock compensation. Does anyone know how it is going to be taxed/settled upon exit? Will there be an option of paying the HK tax for it when it is actually vested after I have left HK? Any help will be much appreciated!
    Best,
    JS


  2. #2

    Join Date
    Jan 2010
    Location
    Sha Tin, New Territories
    Posts
    436
    Quote Originally Posted by johnsmith8:
    Hello,
    I plan on moving out of HK later this year. I have some unvested stock compensation. Does anyone know how it is going to be taxed/settled upon exit? Will there be an option of paying the HK tax for it when it is actually vested after I have left HK? Any help will be much appreciated!
    Best,
    JS
    Hong Kong has no capital gains tax. Any investments you make in HK will not be taxed. In HK you will only be taxed on salary or any other income like renting a flat out. Keep in mind you will get taxed by the country of your origin since HK does not have many tax treaties with other countries.
    Last edited by gardabble; 06-04-2021 at 05:12 PM.

  3. #3

    Thanks, gardabble. Will keep that in mind. The stock-based compensation is part of the salary though.


  4. #4

    Join Date
    Jan 2010
    Location
    Sha Tin, New Territories
    Posts
    436
    Quote Originally Posted by johnsmith8:
    Thanks, gardabble. Will keep that in mind. The stock-based compensation is part of the salary though.
    If its part of salary you pay salary tax which is 15%. You did not mention that part of compensation stocks was your salary. You can read it from nomad capitalist. You should ought to call the Inland Revenue Dept on how to settle that part of the tax.

  5. #5

    Join Date
    Jan 2010
    Location
    Sha Tin, New Territories
    Posts
    436

    If you are leaving hk within 4 months you must contact Inland Revenue Department about this. Its stated in this link below:
    https://www.gov.hk/en/nonresidents/w...bligations.htm


  6. #6

    Join Date
    May 2012
    Posts
    967
    Quote Originally Posted by johnsmith8:
    Thanks, gardabble. Will keep that in mind. The stock-based compensation is part of the salary though.
    If it's unvested options/rsu then you'll lose them when quitting? no tax due then.
    If it's rsu that vest monthly "as part of the salary" you pay taxes on the value at vesting date.

    https://www.gov.hk/en/residents/taxe...le/options.htm

  7. #7

    Join Date
    Oct 2010
    Posts
    22,474

    You will owe HK IRD tax on this. You will need to submit a revised tax return for the year it was granted each twat you get a payout from a part of it vesting. You will then pay additional Salary Tax on the revised up salary.

    I'm still doing this every year. Its a PITA.


  8. #8

    Many thanks!


  9. #9

    Thanks, alexdown! will be working for the same employer in the US. The rsu will follow me.


  10. #10

    Thanks, alexdown! will be working for the same employer in the US. The rsu will follow me.


Reply
Page 1 of 2 1 2 LastLast