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Working remotely in Hong Kong for US company, help

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  1. #11

    Join Date
    Mar 2019
    Posts
    7

    @monomono, I will be a remote base web developer for a US company. The website currently only serves the US market. How did you determine you don't have to pay HK tax? Did you talk to a tax advisor? Thanks


  2. #12

    Join Date
    May 2015
    Posts
    445

    I just called the IRD information line. I told them that I was doing work on servers outside of HK, and they told me for sure no tax is payable and not even to send a tax return. I forget the exact criteria for this exemption - something about the work not being performed in HK - hopefully you'll be in the same situation.


  3. #13

    Join Date
    Mar 2019
    Posts
    7

    So you've been working outside of HK? That would be different from my situation, since I will be working in HK but for a US company and US product. Thanks,


  4. #14

    Join Date
    May 2015
    Posts
    445

    Sorry for the misunderstanding, no I was living in HK and working from home, but the key seemed to be that the work was performed on remote servers, even though I was physically located in HK. To be honest you could argue either way where the work is being "performed" in a situation like that, but if the IRD believes it's overseas, I won't argue with them


  5. #15

    Join Date
    Mar 2019
    Posts
    7

    did you have to file for exemption? Are you also under 1099 contract? what US tax do you have to pay? thanks


  6. #16

    Join Date
    May 2015
    Posts
    445

    I'm not a US citizen so zero tax for me! I didn't need to file anything.


  7. #17

    Join Date
    Feb 2011
    Location
    Hong Kong
    Posts
    6,330
    Quote Originally Posted by bface
    - my other half is not a US citizen or green card holder
    - I will be making less than the exemption amount. However my understanding is that requires working in a foreign country for the majority of the year. Since we are moving in April, I won't be qualified for that?
    - how would 1099 differ from a regular employment situation?
    - regarding US bank account and HK bank account, I am not concerned about the ease of spending right now. I want to make sure I am not double taxed, or for some reason paying more tax than I need to. I understand I will paying HK tax, if I get paid to my US bank account, does that mean I will also pay the full federal tax, and state tax that's tied to my contract?

    Thanks!!!
    Since the company seems flexible on how they pay you. Your partner could open a HK company and you could provide your services via the HK company. Work performed outside of HK would not be subject to HK taxes and since your partner is not a US person then no US taxes. You could be paid a salary in HK if desired and HK has very favourable tax rates and you would be eligible for the overseas foreign earned income exemption.

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