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Tien: Capital Gains, Dividends and Luxury Taxes ....

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  1. #1

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    Tien: Capital Gains, Dividends and Luxury Taxes ....

    At least two of the taxes above will raise some concerns with the regulars here... Capital Gains and taxes on dividends.

    Speaking after raising the matter with Lam at a meeting, Tien said the third wave of Covid-19 had forced many people out of work and affected a lot of businesses. The lawmaker also urged the government to introduce new taxes - such as on capital gains, luxuries and dividends - to bridge the gap between rich and poor and to replenish its reserves.

    https://news.rthk.hk/rthk/en/compone...9-20200910.htm

  2. #2

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    Me thinks they need to define what Hong Kong's "reserves", why those funds are being held in "reserve" etc, before they go around saying that they're broke.


  3. #3

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    With the current environment, it will take years for any proposals to past, if ever.

    Coolboy and traineeinvestor like this.

  4. #4

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    Isn't the best form of wealth tax based on properties in hk ?

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  5. #5

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    Quote Originally Posted by freeier:
    Isn't the best form of wealth tax based on properties in hk ?
    How many properties does he own?
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  6. #6

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    It is a scenario to live with.
    Just like the tax law in other nation changes pertaining to dividends and capital gains.

    If it ever happens, it could be that it is limited to dividends paid by HK companies. A tax law in between what we have in most advanced nations and HK as it is right now.

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  7. #7

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    As a non-resident of HK, but owning a property which is rented out, I pay more taxes to HK government that all you bastards do. I collect $26,500 per month in rent, am allowed to deduct 20% in repairs and maintenance, pay 15% tax, which means I pay $38,160 in taxes.

    If I had a job in HK earning $26,500 per month, married, I would pay zero in taxes (married persons deduction). Even as a single would be paying almost nothing I think.

    So next time theres a free handout or something, before you guys whinge about how overseas HKPR's are scamming it and should be excluded, think of the poor sods like me who are supplementing your low taxes


  8. #8

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    Quote Originally Posted by bdw:
    As a non-resident of HK, but owning a property which is rented out, I pay more taxes to HK government that all you bastards do. I collect $26,500 per month in rent, am allowed to deduct 20% in repairs and maintenance, pay 15% tax, which means I pay $38,160 in taxes.

    If I had a job in HK earning $26,500 per month, married, I would pay zero in taxes (married persons deduction). Even as a single would be paying almost nothing I think.

    So next time theres a free handout or something, before you guys whinge about how overseas HKPR's are scamming it and should be excluded, think of the poor sods like me who are supplementing your low taxes
    Your fault for not structuring it via an offshore company and running all your business expenses through it.

  9. #9

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    Quote Originally Posted by pin:
    Your fault for not structuring it via an offshore company and running all your business expenses through it.
    Wouldn't transferring property from personal name to company name incur stamp duty? Or can you rely on the exemption if the individual is 100% beneficial owner of the company?

  10. #10

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    Quote Originally Posted by bdw:
    As a non-resident of HK, but owning a property which is rented out, I pay more taxes to HK government that all you bastards do. I collect $26,500 per month in rent, am allowed to deduct 20% in repairs and maintenance, pay 15% tax, which means I pay $38,160 in taxes.

    If I had a job in HK earning $26,500 per month, married, I would pay zero in taxes (married persons deduction). Even as a single would be paying almost nothing I think.

    So next time theres a free handout or something, before you guys whinge about how overseas HKPR's are scamming it and should be excluded, think of the poor sods like me who are supplementing your low taxes
    Not entirely correct. If you have other sources of income (e.g. salary, business profits), you can opt for personal assessment. If this is more advantageous (the IRD will select the lower tax compare to splitting up the assessment into salaries tax, property tax and profits tax), you could potentially take a deduction on the interest payments that was used to derive rental income.

    Interest payable on money borrowed to acquire a property used for letting

    Interest you paid during the year on loans borrowed is deductible if the loans were used to produce income chargeable to property tax. However the deduction cannot exceed the net assessable value of each individual property let. Interest payments relating to periods when the property is not let (such as when it is vacant or your family occupies it as a residence) are not deductible.

    https://www.gov.hk/en/residents/taxe...assessment.htm
    traineeinvestor likes this.

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