[Geraldmu]

Hi,

I am making preparation to move from Singapore to Hong Kong to work. Evaluating the compensation package given to me. Working on an on-par package, would appreciate your opinions from your experience what I should look out for such as what is the differences in the premium I should be expecting due to the differences in the standard of living, etc.

Many thanks

Gerald

[AKD]

hey paul..
wanted to ask you..whats the tax rate for people making less than hk 10 k a month..say as less as 30 k a month..is it still a flat rate of 15% ..or is it lesser?...and is there any way of squeezing out of paying taxes for 2 years at the end of first year..?

[AKD]

opps i meant less than hk"100 k" a month

[KnowItAll]

http://www.info.gov.hk/ird/eng/ese/ind_stc.htm

[Geraldmu]

Thanks guys for the information.

I had input my income and it works out to be around 15.5%. Guess that is because the initial progressive tax rate has bands of HKD30,000 (up to HKD90,000) which does not really help.

I guess I would need to analyze the following to make sure that I have the same NETT income:

1) Difference in effective tax rate between Singapore and Hong Kong
2) Difference in Company contribution to pension between CPF (Singapore) and MPF (Hong Kong)
3) Factor in the housing cost

I guess standard of living is subjective like what Paul has mentioned.

Any comments on the above?

Cheers

Gerald

PS: Paul, I am relocating there because my office is shifting there. So, it is not "rate of job".

[shri]

Do keep in mind that you need to pay 2 years tax the first year -- as HK theoretically takes your tax BEFORE you earn it, so you're paying your first years and the second years provisional tax on your first tax bill. Most expats forget this.

[Geraldmu]

Thanks Shri for that valuable piece of information. I guess they will refund us the unearn portion (wherever we are) when we repatriate.