Hong Kong - Tax Filing Service
The pamphlet “A Brief Guide To Taxes Administered By The Inland Revenue Department” will show you possible deductions. Also, if your salary is not generous, you can be taxed according to a step system which can be less than the 15%. You can also go to www.info.gov.hk/ird (a very useful site!) or e-mail: [email protected] . The section on salaries tax even has a Salaries Tax Computation Program that will help you figure out your tax liability. For more information, you may contact:
Inland Revenue Department
5, Gloucester Road
Wanchai, Hong Kong
Tel: + 852 187 8088 (only seven digits)
The tax year runs from April 1-March 31. You should keep records of your property, income, and profits for up to 7 years after your form is submitted. Tax returns are generally filed in May for the previous year. Once the tax form is sent to you, you have a month to complete it and send it back. Then IRD will send you a bill for the money you owe. If you have questions on how to complete the form, you can call IR and they will walk you through the form, but it is very straight forward. Tel: + 852 2187 8088 or + 852 2594 0888.
Some people will talk about a “double whammy” for people when they first pay their taxes. What happens is that a person will work for one year, submit their tax form, and if it takes IRD a while to process your taxes (say 9 months) you will get a bill for the first year plus nine months. You are never taxed on money you haven’t yet made, so if you set aside 15% when you make it, you will not be surprised when the bill comes.
Keep your receipts for charitable contributions. Check on the IRD’s website to see if your gift is an “accepted” charitable contribution for a tax break.
If you do any self-educating courses and aren’t reimbursed for the course by your employer, you will be able to deduct the fee from your taxes, so save receipts.
Your place of residence is taxable, even if it is provided by your employer. If your housing is included in your overseas package, you will have to pay extra tax.You will be charged 10% of the total income from the employer (after deductions) or at the rateable value. If you reside in a hotel, or boarding house, you will be charged 4-8% of the total income from the employer after appropriate deductions.