Hi,
I'm a US citizen who will be starting work in Hong Kong in June. I've heard that income below 90K is subject the local 15% tax and above is double taxed; is this right, and is it still the case if I am moving to HK mid-year?
Any advice would be much appreciated.
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if you work in Hong Kong for more than 6 months in 2011 you will be liable for Hong Kong taxes.
the tax rate is currently 16.5% with very few deductibles outside immediate family members.
you will be assessed and generally have to pay current year, and next year's taxes, Hong Kong requires one year advance payment of earnings tax.
taxes in hong kong are generally assessed for payment in Jan and Apr, with about a 75/25% split, or seem to be in my case
for us taxes - as long as you retain your US passport you MUST file US federal returns. you can claim foreign earned income up to 88,000USD (or some figure close to that these days) using the appropriate form. if you have anything that might complicate your return it might be best to get a professional to help, one based here is generally better as they are more used to foreign filing.
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KMP
14 yrs ago
Hong Kong salaries tax tops out at 15%, not 16.5%
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Similar question:
I am looking for some help with my taxes. I will be leaving Hong Kong back to my original country sometime this year, so will not be working here next year. How do I avoid paying next year's taxes here?
Thanks!
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You still pay the regular taxes (you're not thinking of absconding no?). Just inform IRD not to compute the provisional tax because you're not going to receive salaries for 2013-14 tax year. What you're going to pay for then is tax for 2012-13 incomes only.
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In addition, if you leave payables with the IRD, they're going to get you the next time you deal with them (plus penalties). So a suggestion is to pay them a visit and have your taxes computed before leaving HK (that is if you have plans on coming back to work in the future).
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