If you have timely filed your Hong Kong individual tax return for the year 20xx/20xx, you should have received/ will receive your Hong Kong tax assessment. Generally, the tax assessment should match with tax returns that you have filed to the Inland Revenue Department (“IRD”) and the employer’s return filed by your employer(s). However, you [...]
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). [...]
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 [...]
The Foreign Account Tax Compliance Act (“FATCA”) is a 2010 US law requiring foreign financial institutions (FFIs) to review data for their account holders and identify all their US account holders or be subject to withholding on certain payments. FORM W-8 These foreign financial institutions would request W-8 series forms to identify and document their [...]
Do you need assistance with Hong Kong salaries tax? Here is an overview of the general individual taxation system in Hong Kong. In Hong Kong, Hong Kong adopts a territorial source principle of taxation. Individuals are taxed only on income that has been “earned in Hong Kong”. There is no capital gains tax, no interest/dividend tax and no inheritance [...]
For most U.S. taxpayers living and working in Hong Kong, they may also be subject to filing Hong Kong tax returns and paying Hong Kong taxes. Here is a brief introduction to Hong Kong income taxes (salaries tax). Other types of Hong Kong taxes include profits tax and property tax. Hong Kong does not tax [...]
Most US taxpayers (citizens and resident aliens or greencard holders) living and working in Hong Kong or overseas are required to file US taxes if they meet certain minimum income levels. For tax year 2017, if you file as single, then you must file a tax return if your gross income is $10,400 USD or [...]