Hk Basic Expenses

Expatriate · 26-10-2006, 06:22 PM

Originally Posted by PEN150:

Hi! I am a single female, early 30s. I am currently considering a job offer in HK. I am planning to rent a unit at TSO area, 2 rooms to myself which will cost me around HKD7.5k according to gohome.com.

I need to make sure on the following (based on one-person occupancy):
1. What is the basic power cost? payable monthly?
2. What is the basic water cost?
3. What is the basic gas cost?
4. What is the basic fixed line phone cost?
5. What is the basic broadband cost?
6. If we eat out Mon-Fri, is HKD80/day enough to cover for 3 meals? just normal food.
7. Income tax deductible monthly?
8. Income tax is charged on the amount nett of the 5% MPF?
9. Rental posted on gohome.com negotiable?

I know most of you answered the questions above before, but I am not sure whether the rates were advised before were based on per family or for single people like me.
Thanks!~

1. Power: HK$ 0.99/kWh; CLP charges less if you use less than 400kWh in two months; power charged bimonthly
Highest power use in Summer for the aircon (can be avoided, if you can open the windows and use a fan) and in Winter for the heater, if you enjoy temperatures higher than 5-10 degrees inside.
3. Two possibilities: fixed line or bottle. A small bottle that is knee-high costs around HK$ 180 and lasts about 6 months for cooking only, high rise buildings have a fixed line for gas.
4. Depends where you live. In the new territories, where PCCW has the monopoly, it costs about HK$400 (but that could be for three months).
6. Eating out for HK$80 per day might be possible. A Double Cheeseburger at McDonalds is about HK$8. A bowl of steamed rice is about HK$10 at a chinese restaurant. We pay HK$5,000 for two per month for groceries and utilities, but eat out only once a week.
7. Income tax is paid yearly. You pay 75% of the tax to be expected next year (provisional tax) plus the difference between the provisional tax last year and the tax to be paid for the actual income. Tax year ends 31. March. So your first ever tax payment might cover three years. If you don't have that money then, you can get a tax loan from your bank.
9. Everything is negotiable, except the fees for the government, tax, utilities, transport and similar things.
You need to add to the rent: 2 months deposit, one half month rent as agent fee and stamp duty.

PEN150 · 04-11-2006, 04:49 AM

Thank you all for your very helpful feedback.
Now shall wait for the visa approval....
6~8 weeks, right? Wonder can get within 4?

Crocodile · 04-11-2006, 04:56 AM

Originally Posted by PEN150:

Thank you all for your very helpful feedback.
Now shall wait for the visa approval....
6~8 weeks, right? Wonder can get within 4?

I have lodged visas through an agent and they were ready in 7 days (5 working days)! Just lucky I guess.

Also, when costing how much it is to live, if you like a drink out with friends, then it really does get expensive.

PEN150 · 04-11-2006, 11:46 AM

How much does the agent cost??
Hopefully the HR is capable to get things through for me.

PEN150 · 08-11-2006, 11:01 AM

Originally Posted by Crocodile:

I have lodged visas through an agent and they were ready in 7 days (5 working days)! Just lucky I guess.

Also, when costing how much it is to live, if you like a drink out with friends, then it really does get expensive.

Hi Crocodile, do you mind tell me where can i find an agent to handle this for me? A friend of mine needs that urgently.
MUCHO GRACIAS!!

coolgirl · 08-11-2006, 05:26 PM

Originally Posted by Expatriate:

1. Power: HK$ 0.99/kWh; CLP charges 7. Income tax is paid yearly. You pay 75% of the tax to be expected next year (provisional tax) plus the difference between the provisional tax last year and the tax to be paid for the actual income. Tax year ends 31. March. So your first ever tax payment might cover three years. If you don't have that money then, you can get a tax loan from your bank.

How does the provisional work? I starting working this April, and got my tax demand note, to be paid 75% in Jan 2007, 25% in April 2007. So when's the next one? Because in this case, I just pay for one year of tax.

coolgirl · 08-11-2006, 05:28 PM

Originally Posted by HKFella:

or is aircon power connected to the neighbour's meter?

jayinhongkong, yep, my room is as small as a box - my geo friends donabel, artdude, stepheninhk, cendrillon can attest to that

How I wish I can connect my aircon to the neighbor

Expatriate · 09-11-2006, 01:57 PM

Originally Posted by coolgirl:

How does the provisional work? I starting working this April, and got my tax demand note, to be paid 75% in Jan 2007, 25% in April 2007. So when's the next one? Because in this case, I just pay for one year of tax.

OK, you started in April 2006. The Tax year ended in March 2006. In the Tax demand note from May 2006 you need to state, how much money you earned between April 2005 and March 2006. Which is nothing.

The provisional tax for next year would be 75% of nothing. So you shouldn't need to pay any tax right now.

The next demand note comes in May 2007. Then you need to state, how much money you earned between April 2006 and March 2007.

From that the tax is calculated.

Than a provisional tax of 75% for the tax year of 2007/2008 is added to that.

In this case you need to pay 175% of one year's tax in 2008. And then you can the payment divide into 75% in January and 25% in April.

The next year, you pay the difference of the actual tax needed and the 75% of the provisional tax already paid.
In case your salary does not change, the tax does not change. If your salary rises, the provisional tax calculated last year was 'wrong' and needs to be adjusted.

However, some people think they are smart and leave Hong Kong just before the first tax demand note arrives. If that happens too often, tax procedures will change.

PDLM · 09-11-2006, 02:48 PM

Yes (to sunniefaith) - you pay the provisional tax for the year April 2006 to March 2007, 75% in January 2007, 25% in April 2007.

The following year you will get a bill which is the adjustment (if any) for the year 4/06-3/07, plus the provisional tax for 4/07-3/08. This iwll need to be paid 75% in Jan 08 and 25% in April 08.

If you had arrived earlier you would be paying a larger amount the first time because you would have had part of the year 4/05-3/06 to pay as well.

PDLM · 09-11-2006, 02:50 PM

Originally Posted by Expatriate:

OK, you started in April 2006. The Tax year ended in March 2006. In the Tax demand note from May 2006 you need to state, how much money you earned between April 2005 and March 2006. Which is nothing.

The provisional tax for next year would be 75% of nothing. So you shouldn't need to pay any tax right now.

Er, no - for new arrivals the provisional tax is calculated on actual salaries year to date, as SunnieFaith has discovered with the tax demand which she has.