In times of economic difficulties or when cash flow is not consistent, you may apply to the Hong Kong Inland Revenue Department for a deferral of tax payment to help you get through financial difficulties. For example, a large one-time bonus not expected to be receive in the next year. One option is the holding [...]
Taxpayers are always searching for ways to reduce their tax liability. Here are some ways to reduce Hong Kong tax liability on your individual income tax return: Claim for deductions under salaries tax (i.e., outgoing and expenses, self-education expenses, approved charitable donations and contributions to the Mandatory Provident Fund (“MPF”) or Recognized Occupational Retirement Scheme). [...]
Foreign persons (not US citizens or Green card holders) or nonresident aliens (NRA), risk becoming subject to US tax on their worldwide income if they spend too much time in the United States of America and meet the substantial presence test. However, they may still be able to escape US tax on their worldwide income [...]
Post-pandemic world has seen more and more people started working for themselves either by setting up their own business or working as a freelancer which potentially triggers self-employment tax. In this short article we will briefly look at a few basic questions of the self-employment tax: Who is considered self-employed? Generally, a taxpayer is considered [...]
Do you need an Employer Identification Number (EIN)? Businesses generally need an employer identification number (EIN) if any one of the following is true: Started a new business Hired (or will hire) employees Operating as a corporation or partnership Created a trust Withholding agent for taxes on nonwage income paid to a non-resident alien Change [...]
Do I need file US individual income tax? In order to determine if you need to file US individual income tax return, you may refer to the following online tool on the Internal Revenue Service (IRS) website HERE. What different filing statuses are available on Form 1040 Individual Income Tax Return? There are 5 main [...]
We have assisted many clients earning share awards as employee compensation for the services performed. These awards may have vesting conditions on grant date. As an overly simplified explanation, grant date is when an employee receives property such as a share award from the company. The vesting date is when an employee has received the [...]
Taxpayers earning an income arising in or derived from Hong Kong employment are subject to Hong Kong Salaries Tax under section 8 of Inland Revenue Ordinance. For more information about Hong Kong salaries tax obligations, please refer HERE: There has been good news announced early 2022 for Hong Kong salaries taxpayers as the Hong Kong [...]
Filing a tax return is crucial especially when you are a US citizen or resident alien living abroad. The filing process requires increased compliance with US tax laws of which the burden is placed on the shoulders of a taxpayer. To determine if a taxpayer needs to file a tax return, they may use the [...]
As an investor it is common to have worthless securities and, in such cases, a taxpayer would prefer to claim a loss to reduce the amount of taxes due. Here are a few general questions and two examples on investments in worthless securities: What is a worthless security as defined by IRS? Worthless security is [...]