Posted by
Havefaith
17 yrs ago
FH,
Hi! I am lawyer - with experience in profits tax area. May be I can help. There is something wrong if you are paying 50% profits tax. Do you have a breakdown of HK$75K? Are you including your provisional personal tax in HK$75K.
HF
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If you are paying property tax on the rental income, then you should be allowed 20% deduction after rates. If you are paying profits tax, then you should be allowed to deduct all expenses related to the rental (including interest expenses). Were you allowed 20% deduction?
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If you are earning a salary income, then you are paying salaries tax on that portion. However, you are paying property tax on your rental income. There are only three types of taxes in Hong Kong: salaries tax, property tax and profits tax. There is no income tax per se in Hong Kong.
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lace
17 yrs ago
Foolonahill - You can only claim interest payments when you live in the property - not when you rent it out.
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It's very difficult to get a mortgage in HK unless you have evidence of income into a HK bank account. As for taxes, it'll just be the same as it is for everyone else. You pay 15% tax on rental income after deducting 20% allowance for maintenance, etc.
I do want to know though, is it possible to avoid the rental income tax?
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> It's very difficult to get a mortgage in HK unless you have evidence of income into a HK bank account.
Completely untrue in my experience - and that of several acquaintances.
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