[WhereisHKG]

hi: i am thinking about working in HK, can somehelp me here to decide.

1. Personal income taxation, i read here that max ia ~16% on taxable income. For a foreigner, what are the relieve that i can deduct out of the annual salary? I am coming with my wife and she is not working.

2. As I will be taking a local pay package, i need to understand who i need to consult to gain the maximum deductable for the annual gross as to lower the tax that i need to pay. I read somewhere here that accommodation or rental can be deductable, is this correct?.

Thanks.
Joshua

[PDLM]

The Inland Revenue website is the best place to start. Have a read through this and then come back here if you need further clarification...
http://www.ird.gov.hk/eng/tax/ind.htm

[WhereisHKG]

PDLM: Are there professionals that i can consult?. My job offer is Hk1.5M per annum and the tax looks scary. Thanks.

Originally Posted by PDLM

The Inland Revenue website is the best place to start. Have a read through this and then come back here if you need further clarification...
http://www.ird.gov.hk/eng/tax/ind.htm

[PDLM]

Well yes there are, but the HK tax system is really very straightforward (and 16.5% is one of the lowest rates in the world). If you are bright enough to be worth HK$1.5M then reading and understanding the IRD website really shouldn't be a problem for you...

[tsuiwah]

16% tax looks scary?

also, if you are bright enough to make $1.5M per year, then you can probably afford a professional tax accountant

[WhereisHKG]

any recommendation?

Originally Posted by tsuiwah

16% tax looks scary?

also, if you are bright enough to make $1.5M per year, then you can probably afford a professional tax accountant

[discobay]

This sounds like a wind-up.

[KnowItAll]

There are some basic deductions -- accomodation etc, which you can use. Best to talk to your HR department, I suspect that you're not the first person they've moved in and out of Hong Kong. Really not much a tax consultant can do for an individual.

If you're able to structure yourself as a business and consult with your employer, then there is a lot a tax person can do for you.

Seriously though, if 16% scares you .... you've not lived a good life.

[WhereisHKG]

I think i need to provide some clarification here, it's not the 16% but more on the amount of tax that i have to pay per annum with almost zero in terms of deductables. Practically, the amt you make becomes taxable!!.

Originally Posted by KnowItAll

There are some basic deductions -- accomodation etc, which you can use. Best to talk to your HR department, I suspect that you're not the first person they've moved in and out of Hong Kong. Really not much a tax consultant can do for an individual.

If you're able to structure yourself as a business and consult with your employer, then there is a lot a tax person can do for you.

Seriously though, if 16% scares you .... you've not lived a good life.

[coolgirl]

I agree with the rest. How is 16% alarming? Which part of the world are you living in? Dubai? Middle East is the only area where tax is 0%. Otherwise, HK, SIngapore are tax havens at 15-16%

The absolute amount of tax that you will pay is not alarming too. A lot of people do pay taxes more than you.

It's true that accommodation is tax deductible. How it is done I don't know. The company I'll be working for will explain when I get on board.