|
Instead of the traditional fat expat packages of pre-handover days, a new type of package is becoming more common for employees being transfered abroad by their company. These employees still get many of the allowances listed below (housing, schooling, home leave, medical, cost of living adjustment) to offset the extra costs / overcome inconveniences of living in a foreign country. However, one catch is that the salary is not adjusted upwards dramatically and in return for staying in the home country pension plan, one has to pay home country rather than Hong Kong taxes (this is sometimes called Tax Equalization). While this is supposed to be fairer (e.g. people don't get penalized for being sent to high-tax countries), for Hong Kong postings (due to its low tax rate) this is usually more to the advantage of the company than the employee unless you're American in which case you would be subject to taxation in both your home and host country and Tax Equalization can turn out to be a good deal.
|