Posted by
ems2000
17 yrs ago
I need to complete a tax return and want to make sure that I don't miss out on any allowances or deductions I qualify for.
I heard that there is a way of claiming tax deduction for your rent? Someone mentioned that your employer has to have signed up for this scheme though - does anyone know what it is called? I confused the accounts department as I was very vague and they didn't really understand!
Also we bought a house in the last 3 months - are we able to qualify for any allowance/deduction for our mortage?
ANY HELP or ADVICE anyone can give would be MUCH appreciated so I can get this done quickly. Thank you so much!!
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HI,
There is a way to drecrease your amount of salary declared by breaking the amount in 2 parts : an amount remains as salary, the balance is declared by your company as Housing allowance. In your tax return, if you pay directly the rent to your landlord, you must declare the total amount as "paid directly by me to the Landlord and refunded to me by the company". This amount will be taken off from your taxable income. They will only add 10 % of your final declared taxable income to balance this housing allowance, which is in every case, much more benefitial for the tax payer. Regarding the allowance/deduction for a mortgage, I have no asnwer but I am also in this case and would be very happy to get any information about this matter. Cheers.
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You can claim up to $100000HK on interest paid on your mortgage for 7 years.
You can claim up to $12500 for MPF.
The ird tax site does have all this online as well.
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I had heard about deducting rent from my income when I first came to HK 8 years ago, but when I mentioned it to my accountant he laughed at me and said there was no such thing. Where can I find this written somewhere so I don't make a mistake on my tax form?
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There are 2 types of deduction. One is when you rent a house, then you can split your income partly as rental subsidies and partly as salary. This needs your employer's co-operation and agreement.
This other type is home loan interest allowance. This only applies when you are owning a flat and living in there and you pay a mortgage interest for it. In that case, you can deduct all your interest payment from your salary tax, up to a maximum amount of $100,000 per annum. In this case, you don't need your employer's agreement \ co-operation.
Since you mentioned that you bought a flat 3 months ago. I think you qualify the latter case.
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