Long Term Assignment to HK

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  1. #1

    Join Date
    Oct 2007
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    Long Term Assignment to HK

    Hi,

    I have a Long term assignment scheduled at Hong Kong for a period of 1.5 years starting January '08

    I would be provided around 30K Hong Kong $ per month. I intend to bring my wife as well as my infant kid to stay along with me..

    I spoke to a couple of guys from HKG, and they suggested that I could get accomodation between 4k-6k per month for family and complete all expenses by 20 K

    Is that true... Assuming that food will be prepared from home and I will use the public transport, is it sufficient to stay comfortable in HKG and still make some savings say 10 K..

    Also do we get tax deducted, or we gain rebate because of being expatriate....

    Please advice.. Your candid feedback and inputs is much appreciated..

    Regards
    Sursat


  2. #2

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    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

    Last edited by Alby; 01-10-2007 at 10:36 PM.

  3. #3

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    Everyone gets taxed the same. You can get some rebates if you have a regional job and travel outside HK on business a substantial amount, but this isn't specific to expatriates.

    There's a tax calculator here: http://www.ird.gov.hk/eng/ese/st_com..._08/stcfrm.htm

    As a married man with one dependant child on $30K per month your total tax for a complete tax year (April-March) would only be $8200, and with your employment being split across 3 tax years in the way it is (arrive Jan 08, depart July 09) then you probably won't have to pay any tax for the first & third tax years (2007/8 and 2009/10).


  4. #4

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    Quote Originally Posted by Alby:
    most contracts are 2yrs - if you stay less you have to pay them out.
    All the rental contracts I have even been offered here enabled the tenant to give notice at any point from 12 months onwards. The 2-year term is the period for which the rent is fixed, and within which the landlord normally cannot give notice.

  5. #5

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    How old is your kid? Keep in mind that diapers / formula and other costs can add up VERY quickly.


  6. #6

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    Quote Originally Posted by PDLM:
    All the rental contracts I have even been offered here enabled the tenant to give notice at any point from 12 months onwards. The 2-year term is the period for which the rent is fixed, and within which the landlord normally cannot give notice.
    Yes this is true in terms of rental agreements, as I had more in mind about utilities. Let me rephrase what I wrote...

    Also, you will need to put deposits on utilities. Things such as such as cable/internet where the contract is typically 2yrs - or you can pay out month to month. You should understand how much you will need you need to pay up front.

  7. #7

    Join Date
    Oct 2007
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    More Details

    Hi All,

    Thanks for all your candid responses and valuable inputs.. I am getting more familiar with the tax laws/rental formats/utility cost and so on

    Here are some more details to add upon based on the questions that you have asked

    The Salary would be 30K/month.

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

    The Kid is 9 months now and probably by the time we come he would be 1.2 years

    Assuming 12K for apartment - Will it be fully furnished (TV/Fridge/WM and other items)


    1. Do the Utiling cost need to be paid every month or paid once for 2 Years.. I guess, I might not get that much to pay for 2 years

    2. What other components will have to be borne- Groceries/travel(public)/Amenities/ocassional shopping/visiting places

    3. Is it possible to cover the entire expenses at the max by 20-22 K?

    A split up with approx cost will make me clear if I had to go for this project or not..

    4. So for the first year when you mean I do not pay taxes, my entire salary arrives without any deductions.. Am I right to say that?

    5. Does internet access have to be obtained seperately by spending or does it come along with WIFI in the apartment?


    Appreciate again all your responses and valuable inputs

    Regards


  8. #8

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    Er, you are aware that Macau is, effectively, a different country from Hong Kong and an hour away by ferry?

    Last edited by PDLM; 02-10-2007 at 03:10 PM.

  9. #9

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    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.

    Last edited by KnowItAll; 02-10-2007 at 03:26 PM. Reason: we prefer to link to gohome

  10. #10

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