Getting Your Company to Pay Your Rent . . .

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  1. #11

    Join Date
    Oct 2008
    Posts
    10

    Someone had said in another thread that your housing allowance would count as taxable income in the United States.

    That would be excellent news if that information was incorrect!!


  2. #12

    Join Date
    Jun 2007
    Location
    Taikoo Shing
    Posts
    193

    I can't recall the details, but I believe it is taxed at a lower rate? I'm foggy this morning. I know we talked to deloitte about this and there is some benefit, I am just not sure what it is. I do remember that it is only up to a certain amount, and only on what you actually spend on housing and utilities.


  3. #13

    Join Date
    Apr 2003
    Posts
    12,383

    >> Is this essentially the same thing then?

    As long as the rental payment is seperately accounted and reported to the Inland Revenue, you'll get a tax benefit from it.


  4. #14
    Quote Originally Posted by PDLM:
    In HK the effect, if your employer does the necessary paperwork, is that you would be taxed on an income of $44K ($40K*110%) rather than $50K.
    Hello all,

    Sorry to dig up this old thread (i didn't find any recent thread more appropriate than this one) but i would like to know what "paperwork" the company has to do toward the IRD or to myself so that i can prove/claim that i am eligible to the 10% increase (only) on top of my salary (instead of the full rental addition).

    I also tried to find the information on the IRD website but I couldn't get anything related to this matter.

    My employment contract specifies that the company will provide me an apartment without any mention of "housing allowance" but i guess that it doesn't make any difference for the IRD and that i am subject to pay tax for that benefit.
    Can anyone confirm ?

    (and about the risk that the company provides me a down-grade apartment, it's null as i am doing the research by myself and also with the head of the company)
    Last edited by Chiron43; 25-08-2011 at 04:47 PM.

  5. #15

    Join Date
    Mar 2007
    Location
    Gold Coast Marina
    Posts
    17,939

    They basically have to oversight your rental agreement. It's not particularly onerous.


  6. #16

    Join Date
    Jun 2005
    Location
    Hong Kong
    Posts
    23,217

    All the info you need is in this document: http://www.ird.gov.hk/eng/pdf/pam44e.pdf


  7. #17

    M07 : if the contract is made between the landlord and myself, then ok > my employer needs to oversight
    But do you imply that the contract can not be made between the landlord and my employer ?

    PDLM : thanks that's exactly the pdf i was looking for on their website and couldn't find.
    As usual in this kind of document i am not catching all what they say in their juridic language but they have been smart/kind enough to provide clear examples ^^


  8. #18

    Join Date
    Mar 2007
    Location
    Gold Coast Marina
    Posts
    17,939
    Quote Originally Posted by Chiron43:
    M07 : if the contract is made between the landlord and myself, then ok > my employer needs to oversight
    But do you imply that the contract can not be made between the landlord and my employer ?

    PDLM : thanks that's exactly the pdf i was looking for on their website and couldn't find.
    As usual in this kind of document i am not catching all what they say in their juridic language but they have been smart/kind enough to provide clear examples ^^
    Yes of course the contract can be between the company and the landlord.

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