When do u pay tax?

[ray98]

The employer is required by law to inform the Inland Revenue and to withhold your last salary payment until they have confirmation from Inland Revenue that you have paid your dues.

Details here: Taxpayer who is about to leave Hong Kong

Not quite - the employer is required to withhold all amounts due to the employee by the employer from the date of the IR 56G, not just salary, so you can't ask for termination pay, payment in lieu of leave, etc.

[MovingIn07]

Got my eTax bill today, plus reassessments for 06/07 and 07/08. Not a particularly happy day.

Did you know they were going to reassess? Or does that just "happen"??? Sounds scary!

[Claire ex-ax]

Did you know they were going to reassess? Or does that just "happen"??? Sounds scary!

Well, I had hoped they would forget about it.

I was received a couple of additional payments which I only got at the end of 2008 but were for the previous tax years so each year was re-assessed. The bummer is that the first payment (for 06/07) is due next month and the second (07/08) in two months.

PLUS I received the usual tax bill today. Three tax bills in one day - not a great day.

[MovingIn07]

Well, I had hoped they would forget about it.

I was received a couple of additional payments which I only got at the end of 2008 but were for the previous tax years so each year was re-assessed. The bummer is that the first payment (for 06/07) is due next month and the second (07/08) in two months.

PLUS I received the usual tax bill today. Three tax bills in one day - not a great day.

Indeed no! What I did when I got my bonus was to take 15% of it and put it in a term deposit - while the interest I earn is pitiful, it does at least remind me when I look at is, that it's not "my" money and will get taken away soon....!

[Beanieskis]

My boyfriend's company split their annual salaries in to 13 payments, and pay the 13th when the tax bill is due I believe. Is that common?

[PDLM]

In companies that have it, the 13th month is normally paid at Chinese New Year I believe. But that's only 7.7% of your annual income, so for higher earners that is only half your tax bill.

[ray98]

My boyfriend's company split their annual salaries in to 13 payments, and pay the 13th when the tax bill is due I believe. Is that common?

I think it use to be common when I came back 13 years ago, but less so now. It's a bit of a con actually because they describe it as a Chinese New Year bonus when in fact it's just your annual package split into 13 instead of 12 payments. But with a tightening economy, some employers now call this 13th month payment a discretionary bonus, and some employers will just refuse to pay it on the grounds of hardship. Of course during good times and they want to retain you, they will pay it and more if you're lucky, but really, it's taken from your annual package which will include things like employer's MPF contributions. To an employer, if they decide to pay you X amount a year, they don't really care how that X is split: salary, MPF, bonus, housing, etc.

[Beanieskis]

I guess it's a good idea for employees who are not good at budgeting, but at my boyfriend's firm they're all accountants, so they should be! In reality it's not good for someone who's good with money as it would be better sat in a savings account accruing interest... It is contractural in his case, and it's a respectable company so I'm sure they'll pay it!

[ray98]

I guess it's a good idea for employees who are not good at budgeting, but at my boyfriend's firm they're all accountants, so they should be! In reality it's not good for someone who's good with money as it would be better sat in a savings account accruing interest... It is contractural in his case, and it's a respectable company so I'm sure they'll pay it!

If it's contractual, then he has no problems, but I know from painful, bitter experience that the big 4 accounting firms I have worked at now have a variable discretionary payment system for the annual bonus introduced to give them flexibility over staff costs during harder times.

[Beanieskis]

Oh right, well discretionary bonuses are in addition to this, which is treated as your annual salary is X which will be paid in 13 equal installments.