[PDLM]

pdx,

The other question that is significant here is whether you are a US citizen - if so then you have the misfortune to be taxed on that basis on your worldwide income, so you will need a higher gross salary in HK for the same net income as citizens of any other state. This is an inherent competitive disadvantage that US citizens have when working overseas.

[pdx]

PDLM, thanks. Yes, I'm an American citizen. I was under the impression that the first $80,000 USD I made in HK would be exempt under U.S. tax laws, and that I would pay HK taxes of 15% maximum. Please let me know if that's incorrect. That's how it basically worked when I last worked in HK. (I think the first $70k USD was exempt then.)

[PDLM]

I think you are correct, but at a gross salary of US$135K that's a significant difference in net salary (HK$10K per month or so - which would just about pay my beer bill)

[pdx]

Yes, you're right. If I made $135k USD, I would owe the IRS more. But I don't think I'll make anywhere near that. My industry is not flush, so I'm trying to realistically maximize what I can negotiate for. Tell you what, though, I will gladly buy you a few rounds of beer if I end up making $135k. (And I will be dancing around like that banana icon.)

[nivantj]

the_seeker,
Considering your lifestyle and working on assumption that you are single, you can surely save USD1000 or probly more in HK...

[Mat]

agree with nivantj.....should be no problem to save 1.000 USD being careful you could even go up to 1.500 I guess

[freeier]

i suggest a sensible way:

1. first take away the housing cost in US. e.g. 8k USD of your 75K. that leaves 67k USD.

2. depending on what situation, if they are asking you to come or you are asking to be posted. if former, do a 30~40% kind of premium (hardship allowance). if latter, put a 10~20% premium for the anticipated cost of living increase.

3. assuming 40%, then it becomes 67*1.4 = 93.8k USD.

4. add back housing expectation, probably 2.5k USD p/m or 30k USD. That gives you back 123.8k USD.

5. but if you are really keen to come, and you think the company is not going to pay you if you ask for 125k USD, then forget about the cost of living premium.

6. suspect the actual cost of living, minus the housing, are in fact more or less the same. as long as you choose not to drive and take public transport (e.g. cab).

that's what i wld count.

[pdx]

Thanks, freeier! This sounds like a reasonable for me to do the math. I'll give it a go and see what the company says. If they say no, at least I can explain my math, so I don't sound like I just pulled the figure outta my butt.