Long Term Assignment to HK

[Pekkerhead]

you could find yourself a floor on a village house (700 sq Ft and usually 3 bedrooms - if you get a ground or top floor flat you will get extra space either from extra garden space or a whole roof to yourself) for a decent price as long as you are prepared to live out in the styx. I am pretty sure Boris mentioned in another post that he pays 6K p.m out in Ting Kok Road.

It's not so inconvenient as it first sounds as there are express buses into the Island that can speed up travel time (and in fact are sometimes quicker than the train).

[Sursat]

4k-6k per month - where did your colleagues in HK say you could live and how much space you could get for such a price.

I am unclear whether your salary is 30K / mnth or you will be given 30K/mnth for housing expenses? Although....

Keep in mind the that the average HK family of 5 (husband, wife, 2 kids and helper/grandparent) live in a 2 bedroom, 1 living room (common room) with kitchen (no oven) and shower bathroom (no bathtub) apartment which is approx. total of 500 to 600 sqft - generously speaking.

For yourself, wife and an infant I would recommend 10-12k per month - you can get a good size apartment in the New Territories for that price such as Gold Coast, Yau Tong, Shatin, etc...

Also, you will need to put deposits on utilities as well and most contracts are 2yrs - if you stay less you have to pay them out. the difference from paying the rent can be used to cover the utility deposits and cost.

Where will you be working

Thanks Alby.. Considering 12K per month for accomodation, can you possibly split expenses for utility/basic grocery/other charges

I want to see if it fits into my budget of 20k HKD considering travelling by public transport and food at home..

I need to make my decision in a day or two and hence appreciate your earlier response. I can also call you at your number if it convenient for you..

[PDLM]

The location have to be in and around Taikoo Shing or Macau

If you really meant that then it makes a HUGE difference whether it is TKS or Macau. Macau is effectively in a different country - you'll be going on a one hour ferry journey from Central each day, through immigration out and in, and so on. You would really have to have very good reasons to live in HK and work in Macau, and it really doesn't make sense if you are paying for the transport to Macau (~HK$250 per roundtrip).

[kohana]

If you earn 30K/month, the income will be fully taxable (after calculating on a DIDO basis, if applicable to you). However, if you earn, say 20K/month, plus 10K housing allowance (i.e. 30K/month), the annual salary of 240K will be taxable while the housing benefits of 120K will not be fully taxable but on a certain percentage of your income. e.g. for an apartment, the housing benefits is to be taxed at 10% of your income, i.e. 24K. So from a tax perspective, it is better for the Company to provide you with housing benefit in return for a lower monthly salary, but the housing benefit should be a genuine one with proper control exercised by the Company, not merely a cash allowance. The apartment can be entered by yourself or by the Company.

[Sursat]

Hi,

My Salary is broken into 3 components
1. Living Allowance - 13,000
2. Housing Allowance - 11,000
3. Flexible Benefit Plan -6564

So there is definitely a provision for housing allowance.

So when my 240 K is taxable, is it at 17.5 % flat or I have option to reduce the tax burden..

Please advice

Thanks

[Sursat]

If you really meant that then it makes a HUGE difference whether it is TKS or Macau. Macau is effectively in a different country - you'll be going on a one hour ferry journey from Central each day, through immigration out and in, and so on. You would really have to have very good reasons to live in HK and work in Macau, and it really doesn't make sense if you are paying for the transport to Macau (~HK$250 per roundtrip).

I apologize, it would be Taikoo Shing and not Macau. I am ok to stay at a place which is quite economical and take a public transport to reach office...

Am I right to say that it is easy to reach any place within Honk kong within less than a hour?

Thanks

[Sursat]

I think you may ask the company hiring you to provide a housing allowance. I say you won't be able to save a lot from the 30K salary if you have to pay the house rent, utilities, etc.

Average cost I think for you and your family would be around 20-25K. That'll include transportation, going to theme parks (sometimes) or shopping. That's if and only IF you can find yourself a flat for around 5 - 8K hong kong dollars which I'm sure you'd be able to. These cheap flats don't come with all the fancy stuff like internet connection, furnitures, etc. check this link out:
http://www.gohome.com.hk

this has a list of flats, their sizes and monthly rental.

If you want the baby to have a separate bedroom, that'll add up to the house rental cost which means you'll have to find a 2 bedroom flat around 400 - 500 sq ft. It's not too big but not too small I guess for a family of three.

Thanks for the reply. I am looking out for a 2BHK apartment with the reasonable facilities/amenities. I can shell out up to 10K in and around Taikoo Shing. Can I get a semi furnished/fully furnished apartment atleast 500-600 Sq ft..

[kohana]

About your housing allowance of 11,000, does the company have any control over the use of it (i.e. only be used over your rental expenditure) or you can use the money in whatever way you want but still can claim the money. If it is not a genuine housing allowance but merely a cash allowance termed with "housing allowance", the housing allowance is taxable in HK.

[kohana]

I mean the housing allowance would be wholly taxable instead of 10% of income attributable to your HK assignment. But said if you are from US which taxes at global income, the tax matter here might not be a concern as you can claim tax credit there.