[biz]

I am at the stage of negotiating the finer points of my contract for my move to HK. The company (an international bank) will equalize my UK basic wage and pay rent, school fees and home leave. A total cash amount has been agreed per year in sterling. Does anybody have any experience of how best to structure this? I believe the only element with a tax benefit is the rent. All the rest is as if paid cash? They are flexible and will pay whichever way I want and in whichever currency so any tips much appreciated. Thank you.

[PDLM]

See my answer in "the other place".

[Katanga]

biz

I am also in banking and am from the UK. It is fine to have your contract based in GBP. Since you are getting school fees, homeleave and rent paid just make sure that:

1. they are clear of the exchange rate they are using. My place rebases every 3-4months,
2. you have the flexibility to split your pay i.e. take some in GBP and rest in HKD. Not sure how your bank would pay it but it should pay the GBP into a UK a/c and the HKD into HK.
3. You will probably be tax equalized so it doesn't matter where you take the money.
4. Make sure you find out how your bonus is going to be done. If they are going to tax equalize to UK (40%) then you need to ensure that the gross amount is based as if it is a UK person based bonus.

Go pvt with me if you more questions - I am a seasoned expat and can walk you through issues etc.

[Katanga]

oh.....and make sure they are paying for flights over, shipping, temp accomodation and assistance with search for your new place, opening of bank accounts etc.

[Meerkat]

Originally Posted by Katanga

oh.....and make sure they are paying for flights over, shipping, temp accomodation and assistance with search for your new place, opening of bank accounts etc.

Are there such things as consultants who help with flat searching and bank account opening and tax advice etc? Or do I need to find separate people who help with this? Any recommendations?

Cheers
Meerkat

[Katanga]

Meerkat

This should be handled by your company. They would have a contract with a relocation company who would deal with all the things you mention and more.

Companies like Santa Fe do the whole co-ordination on School search, flat finding, orientation, bank accounts, utilities etc. Typically tax advice will be with one of the "bif 4" accounting firms.

The relo company will not be doing everything themselves- they fan it out to the experts but you deal thruough the relo company.