Another salary question: Is 40K enough for two?

[PDLM]

There are no trains to South Horizons yet, but 30 minutes by MTR to Central covers a large part of the territory. You would certainly get a nice 3 bedroom place in Tung Chung, for example, for 20K.

[PDLM]

regarding tax, i understand that there is no tax for the first 12 months on arrival in HK.
Is that true or am i grossly misinformed?

You're misinformed. You may end up paying later (depends on the timing of your arrival and the tax year) but tax is due from day one. It is normally paid in two payments each year in January and April. You may not have to pay for 18-24 months, but when you do it would be for the period since you arrived.

[ranjithc]

Thanks HongKongFoot,
I assumed Carang was running a kennel service.

[carang]

nope, definitely NOT a kennel. the dogs stay in our home with us. VERY different than a kennel (and a lot more work! LOL!). thanks, hkfoot.

you may be able to get something in wanchai for that, but it will be: small, old, and unlikely to be 3 bedrooms, maybe 2...

south horizons is in aberdeen, so no train there, only buses, which are ok, except in traffic.

tung chung for that price would get you a very nice place, i would think. you could probably also get something nice in tsing yi.

you could try north point (not sure what you would get) or sai wan ho (some new buildings there, but not sure what the going rental rate is).

[BenderBends]

You're misinformed. You may end up paying later (depends on the timing of your arrival and the tax year) but tax is due from day one. It is normally paid in two payments each year in January and April. You may not have to pay for 18-24 months, but when you do it would be for the period since you arrived.

also...the first tax payment is usually rough, as you need to pay current year and next year payment. the following years payments are easier as you are only paying the next years tax.

[PDLM]

Not quite - at the point you pay it, you are paying last year's estimate of the current year's tax. For example, in January and April 2011 you will pay the estimated tax for the year April 2010-March 2011, plus any correction necessary for the provision tax paid the previous year relating to the tax year April 2009-March 2010.

[BenderBends]

Not quite - at the point you pay it, you are paying last year's estimate of the current year's tax. For example, in January and April 2011 you will pay the estimated tax for the year April 2010-March 2011, plus any correction necessary for the provision tax paid the previous year relating to the tax year April 2009-March 2010.

i thought it was reversed...i thought when you pay in jan 2011, you are paying for estimated taxes for 2011 (pre-payment) and corrective adjustments for 2010.

ill have to look at my tax forms again

[MovingIn07]

I find the easiest way to manage my taxes is just to put 16% of my salary into tax certificates each month. It may take a while to equilibrate, but it does eventually and at least you don't get tempted to spend the tax! Plus the administration involved in remembering to make tax payments is removed (worth it for me, I forget these things!).

[PDLM]

i thought it was reversed...i thought when you pay in jan 2011, you are paying for estimated taxes for 2011 (pre-payment) and corrective adjustments for 2010.

Yes you are but "2011" means the tax year April 2010 - March 2011, and "2010" means April 2009 - March 2010. So by the time you get to pay (75%) in January 2011 it isn't "pre-payment".

[bdw]

I was caught out when my first tax bill came at the end of first year. It was for two years worth of tax.

The thing I find really stupid is that they let you pay in two installments (in Jan and April), but they charge you about 85% in Jan and 15% in April. Whats the point of that? I might as well just pay it all at once and get it over with then.