Australia /Hong Kong Tax

I have a work visa and work in HK for an Australian Company, they pay me in AUD.


I pay tax in Australia (a lot)


I've been told that because I am a "non resident" of Australia I will receive a full refund.


The refund sounds great however it just doesn't seem right. Should I pay Tax in Hong Kong to qualify? How?

How long have you worked away from Oz? To become a non-resident its has to be over a certain amount of days continuously. I think it is 90 days but could be 6 months, I forget.


Best to first talk to your HR dept

I've been in Hong Kong for over 2 years, yes "I know" I should have figured this out a long time ago but I have been waiting for HR to advise. They just fessed up - they have no idea!

Give smats.net a try

We are Australians working in HK now for 7 years. When we left Australia we notified the IR that we were non residents for tax purposes and after submitting the initial tax declaration which covered some months in Australia's financial year have not had to submit a tax return there since.


We also are paid in AUD but into a HK bank account and transfer $$ back to Aust to service our mortgage and committments there.


There is a lot of information on the Aust IR website but would also suggest you talk to someone at SMATS. Why pay Aust tax at a high % when you only need pay 15 or 16% tax here in HK??

Thanks Dasia for the reply, Im curious if you pay tax in a Hong Kong and if you submit your tax declaration to Australia stating that you are excemt this year due to (residing / paying tax O/S)

larrakya, the first year we were here we submitted our tax return for the period we worked and had an Aussie income to the Aust IR. On the tax return we included our HK address and contact details. There after we commenced paying HK tax.


We do submit a tax return in Aust each year as we have investment properties there but only state the income earned on the properties in the return. Since we pay HK tax on our HK earned income we do not state that income in our Aust tax return.


If I was in your position I would definitely get an 'expert' in Australian tax to sort out the tax returns you have submitted whist working and earning in HK. You would probably then have to 'backpay' any taxes due in HK for that same period - I am not sure.


Get educated professional advice and sort it out asap so you get the advantage of lower tax rates here in HK.

Dear larrakya,


If you wish to have a “refund” from Australia Tax Office, you must:

(1) provide evidence that you are a “Australia non-resident”; and

(2) ensure you have no Australia-sourced income that impacts on the refund process.


For point (1), under Australia tax law, Australian residents are generally taxed on their worldwide income (i.e. your income is taxable wherever you are). On the other hand, non-residents are generally taxed only on their Australian-sourced income.


To check your residency statue, the Australia Tax Office has provided a residency tests to determine your residency status for tax purposes (which are not the same as those used by other Australian agencies for other purposes such as immigration).

Generally, you are an Australian resident for tax purposes if you have:

• always lived in Australia

• moved to Australia and live here permanently

• been in Australia continuously for six months or more and for most of the time you have been

o in the one job, and

o living in the same place

• been in Australia for more than half of the financial year, unless

o your usual home is overseas, and

o you do not intend to live in Australia.


Regarding point (2), even though you have a working visa and work in Hong Kong, we would need to consider carefully whether your Australian employer has treated your salary as “non-Australia-sourced income” or not. If not, you are likely fully subject to Australia income tax.


For Hong Kong taxation, you will be subject to Hong Kong salaries tax generally if your income is arising in or derived from Hong Kong from any office or employment (i.e. Hong Kong sourced income). This will be fact driven.


It is always not an easy task to identify the source of income, particularly for expatriates who work in Hong Kong. Several cases and tests have been developed by the Hong Kong courts and Board of Review.


Please also note that as there is no double taxation treaty between Hong Kong and Australia, you may need to pay tax to Hong Kong for your Hong Kong sourced income and Australia for your Australia sourced income and request “credit” where applicable.


Should you wish to engage specific assistance, contact +852 2526 1767.


Weir & Associates