| If you haven't already been sent a tax return to complete, then you will most likely not receive one until April/May 2008. You will need to return this tax return within a few weeks, and then some time later you will be sent a tax assessment. This tax assessment will cover the tax that you will have to pay retrospectively for the tax year April 2007 - March 2008, and provisional tax for the tax year April 2008 - March 2009. You will be required to pay 75% of this tax bill in January 2009 and the remaining 25% in April 2009. (At which point you will have been here for two years and paid two years tax.)
The amount you will have to pay depends on how you employer handles the "housing allowance". Do they:
a) provide accommodation leased in the company's name with a rental of HK$21K, or
b) just give you HK$21K per month and not care what you do with it, or
c) give you $21K, you take a lease of $21K, they keep a copy of the lease and all your rental receipts, or
d) give you $21K, you take a lease of some other amount (higher or lower), they keep a copy of the lease and all the rental receipts.
The tax bill will be different in each of these cases.  |