No. See the document that I linked to in my previous post.Originally Posted by kasumen:
PDLM, I have basically glance through the document but still not very sure how it works. Assuming proper control is in place, rental paid by employee per month is HK$10,000
Housing Allowance HK$120,000
Total package HK$300,000
RV HK$300,000*10%-HK$120,000 (HK$ 90,000)
Assessable Income HK$210,000
Am I calculating it correctly? Doesn't seems logical to me.
Salary = HK$180,000
Taxable value of Housing allowance (regardless of how big that housing allowance is, provided that the employer can show that you spend it all on rent) = HK$18,000 (10% of salary)
Total income for tax purposes: HK$198,000
Note that if you get any bonuses then these will also increase the taxable value of your housing allowance.
So if, for example, you get a bonus of HK$20,000 at the end of the year then:
Salary = $180,000
Bonus = $20,000
Taxable value of housing = $20,000 (10% of salary + bonus)
Total income for tax purposes = $220,000
that's what i thought....no where did he say he was getting a housing allowance, only that he could deduct rental payments...
i used to own a company and hadd rental payments as part of my "package" to lower taxes, but never did i get the entire amount deducted....
IC. Fully understand now. Well, I am being told the total sum of rental is tax deductible, that makes me so confuse. Thanks for the explaination. All of you are very helpful!