[Janetw]

I need some advice, there is a possibility I will be able to work for a UK based company when my husband is re-located to HK next year. i would work on a commission only basis as am not dependant on the income and just want to keep a hand in a field I have worked in for many years. however I am not sure what is the best thing to do regarding income, should I keep a uk account open and take the money and pay UK taxes or is it better to pay HK taxes. I ahve not been self empolyed before and this will probably be the only way I could work in HK... dnoes anyone have any advice ??

[enzo]

better to pay hk taxes as it is lower. on the other hand can open a BVI company then no tax at all. You will need an accountant firm to do this for you on your behalf but sure saves alot. be early to prepare cos not all banks allow opening accounts with BVI cos., HSBC is not as strict.

[Janetw]

Excuse my ignorance but what is BVI??

[KnowItAll]

Err .. BVI -- British Virgin Islands offshore company. A BVI is not worth it unless you're going to be earning a truckload of money.

Lets put it this way, you technically cannot get a HK salary because you'll be resident here on a dependant's visa.

Go figure ..

[Janetw]

I obviously need to do a lot more investigating. Will be paid commission by UK company but prob not more than £40-50 K I will not be an employee and need to set myself up somewhere as self employed. will be annoyed to pay UK tax and NI when I will not be living back there as we will be in HK for 3 years before moving to Switzerland..... Thanks for your advice

[PDLM]

Erm, if you undertake employment in HK then you need an Employment Visa in HK. Where you are paid is irrelevant to most tax authorities (certainly to the UK and HK ones) - it is where you do the work that matters.

(Many expats are employed under contracts in their home countries and paid in part or in full in those countries, but once they have met the requirements for being non-resident there they will be taxed solely in HK (unless their business takes them so much out of HK that they are also liable to tax somewhere else, as I found myself one year when I spent more than 90 days in Taipei).

So in principle if you work in HK whilst on a dependent's visa you run the risk of you and your sponsor (husband) having your visas withdrawn.

[Janetw]

Ah. thought I had come up with the ideal way to keep myself busy........... thanks for the advice - even thought it was not what i wanted to hear.!!

[tsuiwah]

KIA, what do you suppose is the breakeven definition of a "truckload of money"?

[KnowItAll]

About 20-30% savings I'd guess?

[Sazzy]

Roughly speaking, to obtain a BVI company costs around US$750 and then there are annual fees you must pay (including Registered Agent fees, registered office fees and BVI government fees). This can be around US$700+ per year. (I think). Obviously you will also have to maintain company records etc