Quote:
Originally Posted by freeier
yes, u can increase your housing allowance to cover your full rental.
no, but you cannot be totally taxed free.
e.g. your original pay = 40,000, your actual rental = 10,000
you can split yoru pay into 30,000 + 10,000 rental
then you will pay tax for 30,000 * 10% extra, = 33,000
the 10% extra on your base pay is like your rental in lieu.
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does it mean that if housing allowance is not taxed, the basic salary*110% will be subjected to 16% tax? By the way, is housing allowance tax deductible? MPF is 5 or 10%? subject to an income cap of HKD20,000/mth? is bonus subjected to mpf?
Eg if basic is 25,000 and allowance is 20,000