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Quick decision tree for taxability of salaries income in Hong Kong:


For H.K. source employment, if NIL service in H.K., then fully non-taxable in H.K., or:

  • H.K. source employment + employee be H.K. resident = fully taxable in H.K.
  • H.K. source employment + employee be non-H.K. resident + visiting H.K. less than 60 days = fully non-taxable in H.K.
  • H.K. source employment + employee be non-H.K. resident + visiting H.K. more than 60 days = fully taxable in H.K.
  • One additional factor to consider: for H.K. source employment, if some income from service provided in overseas and overseas tax paid, that part of income can exempt from H.K. Salaries Tax (rest still taxable in H.K.).

For non-H.K. source employment, if NIL service in H.K., then fully non-taxable in H.K., or:

  • Non-H.K. source employment + employee be H.K. resident = apportionment taxable in H.K. based on days of services provided in H.K. over total service days (if 100% in H.K., 100% taxable)
  • Non-H.K. source employment + employee be non-H.K. resident + visiting H.K. less than 60 days = fully non-taxable in H.K.
  • Non-H.K. source employment + employee be non-H.K. resident + visiting H.K. more than 60 days = apportionment taxable in H.K. based on days of services provided in H.K. over total service days (if 100% in H.K., 100% taxable)

Special case: director remuneration, as the power of the officer position is imposed by H.K. Company Ordinances, so that fully taxable under H.K. Salaries Tax no matter where the service is rendered and where the director locates (some opinion is that should look at H.K. is the company's central management and control place or not).

If same person has several separate employments, need to go through above procedures separately for each employment.

[IRD BIR60 specimen]

[IRD guidance - Completion and Filing of Tax Return - Individuals (BIR60)]

[IRD guidance: 來港工作人士薪俸稅簡介A guide to Salaries Tax for people coming to work in Hong Kong]

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1 Answer

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DIY Q & A Section for individuals tax:

Question 1: why the Employee Return's envelope and returning envelope is in green color?

Answer 1: it's to facilitating post officer to identify such kind of mail to speed its handling.

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