Like Tree5Likes

Tokyo - HK transfer salary question

Reply
Page 2 of 2 FirstFirst 1 2
  1. #11

    Join Date
    Jun 2004
    Location
    HK
    Posts
    14,593
    Quote Originally Posted by TheBrit:
    I think the opposite is true - Hong Kong is much more attractive than Tokyo for decent packages because the tax is so much lower here; hence the financial advantage is compelling.

    If you are not on a decent package in Tokyo you are not paying a marginal tax rate of 50% and Hong Kong's tax advantage is negated.

    If you have a moderate package in Tokyo and a moderate package in Hong Kong then you might as well take the better quality of life & much cheaper accommodation in Tokyo....... but if you are giving away 50% of what you earn to the Japanese government then Hong Kong starts to be more attractive, financially.

    I do agree that Hong Kong is much easier for trailing spouses to find work, actually it's much easier to find work here full stop.
    They did not mention the 50% taxes...guess I will have to squeeze them more next time we meet

  2. #12

    Join Date
    Jun 2010
    Location
    Kent, England
    Posts
    6,728

    Yes, there is still the impression everywhere that "Tokyo is so expensive". Maybe as a tourist it can be, in Ginza or the high-class hotels, but when you live there and know where to go.....bit like everywhere else in the world I suppose!
    I must admit though, when we first got there in 1996, fresh from the UK, going for a beer in the pub and a pint was £7.50 was a bit of a shocker!


  3. #13

    Join Date
    Oct 2010
    Posts
    23,357
    Quote Originally Posted by Mat:
    They did not mention the 50% taxes...guess I will have to squeeze them more next time we meet
    Basic tax rates here

    Taxes in Japan

    You can see the tax is low for low to mid-income earners but ratchets up nastily. You pay the National, Prefecture & Municipal rates which sum to 50%. I believe pension and health-care contributions are on top of those but I'm not too sure as I was enrolled in alternative schemes.

    So if you are in the higher bands, even with absurd property prices Hong Kong is better financially. However, if you are in the lower bands then the tax regimes are less dissimilar and you can live in a nice place in Tokyo for a lot less than here.

  4. #14

    Join Date
    Jun 2010
    Location
    Kent, England
    Posts
    6,728

    Yes, one of the several reasons we had to leave was the tax rate, particularly as you are taxed globally after you have been there for 5 years. We will be getting some of the extra contributions back, which is a result as we thought that as we'd left we'd lose them


  5. #15

    Join Date
    Jun 2004
    Location
    HK
    Posts
    14,593

    Hmm nasty tax system indeed (for the top bracket I mean)


Reply
Page 2 of 2 FirstFirst 1 2