Is there a different taxation system living in HK but working in China?

[JessHong]

Hi All,

I'm a headhunter/recruiter from Malaysia. I have a candidate who is supposed to join a HK-based Multinational company but is required to work in China almost 90% of his time. He told me that the tax rate is higher for such arrangement, i.e. tax rate of 30% instead of the normal 16%-17% if he were to work within HK.

Please advise. Thank you.


Regards,
Jess

[Sleuth]

I believe that is true, in general. Although I think PRC tax is 40%, not 30%.
It is also possible he will pay both taxes.
Is he paid by the HK or PRC company?

[JessHong]

Thanks for your reply.

His salary is paid by the HK company.

[Sleuth]

Well, you now are outside my limited experiences.
Being paid by the HK company will probably result in HK taxes.
On the PRC side, I think this hinges on the number of days spent working in China. Go over 183 and you'll probably get PRC taxes.
I have to put up a similar post because I am getting confusing signals on my situation also. Almost like nobody does this.