[pandabearest]

Hi

I read about provident fund contribution.

I am moving from a foreign country to HK and I am just looking at the contract/offer......

I have a few questions:

1)Should this be included on top of annual salary

2)What percentage of salary is it?

3) Also my contract says I have to take care of my own tax obligations entirely. Is this normal?


Answers would be great....

[Claire ex-ax]

1)Should this be included on top of annual salary

No, it is a percentage of your salary.

2)What percentage of salary is it?

5% of salary per month, up to a maximum of $1,000 per month. Employer pays the same amount.

3) Also my contract says I have to take care of my own tax obligations entirely. Is this normal?

Yes. Some US companies may offer its executives assistance completely forms because they have to pay US tax too and need an accountant. Your employer will give you a form detailing your annual salary - a copy is sent to the Inland Revenue. You complete the salary tax form - which has to be one of the easiest ones to fill out. The Inland Revenue send you a bill and you pay it on the date/s shown.

BTW, where are you from that companies pay employees' tax bills?

[pandabearest]

No I mean that they auto-tax you out of your account when paid (not pay your tax per-sei)....sorry for confusion... I will have to set-aside myself (not used to doing this will have to get a separate account)....

I have clarified the provident fund contribution point. Thankyou

[Claire ex-ax]

No, there is no PAYE here, except for civil servants (SAYE).

I find the easiest thing to do is buy Tax Reserve Certificates (TRCs) each month as my tax isn't usually too much. That way I get a little (miniscule) amount of interest from on the certs which goes towards the bill. And the bill/s is/are paid automatically (notification first), no having to remember two dates six months ahead. I forgot one year and got slammed with an additional 4% on what was owed.

BTW, your first bill will be a whammie! as you pay for the year gone and provisional tax for the following year. Save/plan accordingly.

Info on TRCs: TRCs

Forgot to mention, the 5% or $1000 is not taxable but any extra contributions are.

[pandabearest]

Thankyou so much, work might give me a pack explaining, but this is really good advice.

I would prefer to know it is paid monthly, although I wouldnt touch the money it is alot different to what I am used to.

Are you aussie?

[Claire ex-ax]

No, a whingeing Pom!

If you are an Aussie, will you pay into a retirement fund back home? If so, I believe you would exempt from the MPF in HK.

[pandabearest]

I am not sure as yet, I am going to get my yearly tax return done this saturday as it happens

So I have a pile of questions for my lovely tax agent.... I am sure she will be glad to see me

Thanks sweet