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Rental allowance - company tax implication

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  #1  
Old 21-06-2006, 11:04 AM
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Rental allowance - company tax implication

Are there any accountants who could give me an idea of whether its more tax advantageous for my company to give me a separate rental allowance rather than roll everything up into my salary? I know it has tax advantages for me, but I need to know if there's any benefit to them from doing so?

I'm negotiating with them and am asking for everything to be included into my salary, so I'd like to know if such an arrangement will be more costly for them.

I've checked the HK tax authorities website but I've only managed to decipher the part on personal tax law before my head starts spining.

Thanks!
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Old 21-06-2006, 01:30 PM
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i think u are providing too little details for ppl to help. 8-)
even if your rental is not part of the salary, u still have to compute it in equivalance and u still have to pay tax for it i'd think.
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Old 21-06-2006, 09:09 PM
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rentq

I'm sorry if I wasn't clear. What I meant was would the company have to pay more tax (corporate tax) if they classify the portion of my renumeration that is rental subsidy as base salary?

I know what my own tax implications are for such a move, but I don't know HK corporate taxation law, and what this means for my company's tax bill.

I'm asking them to roll up everything as salary and not give me a rental allowance, but they may claim that this would result in a higher tax bill for them. I'd like to check if this would be the case.

Thanks!

Last edited by z754103; 21-06-2006 at 09:10 PM.
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