Posted by
Donnialda
20 yrs ago
I heard rumor today that there is an Exit Tax to leave Hong Kong whether to go home or to visit another country. Supposedly it's 16% of wages incurred thus far.
Can anyone shed light on this?! I thought HK was Income Tax-free!
While we're on this subject, do I have to file US tax return for these wages?
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There is no exit tax as such but before you leave you need to visit revenue department & settle all outstanding income tax, which works out around the 16% you mention. Your employer will be liable for your tax if not so its usual they want to see you have paid before releasing any money owed to you.
And don't forget you can claim one time only all MPF you have paid in if you are leaving forever - leave and come back and your mpf sits there until you retire!
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TC
20 yrs ago
You thought HK was Income Tax-free!!!!!!!!!!!? Now that defies logic. There's no such thing as a free lunch anywhere. Welcome to the REAL world. There's not an exit tax as such (hang on I've just realised I'm repeating what has already been said). Generally if you've been in HK for more than 12 months (and it doesn't sound like you have) then you've probably already paid provisional tax in advance anyway - so if you skip HK without settling with the IRD then you probably haven't got away with too much (unless you've had a significant salary increase in the current year). But yes, when you leave HK for good (not just for a temporary visit elsewhere) you are required by law to settle your financial obligations to the HKSAR government.
On the subject of the US tax I can't be specific, but on the basis of the changes (US, not HK) about 6 months ago (?) I think you might be in for a bit of a shock.
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qvong
20 yrs ago
HKSAR requires that you pay your taxes in one lump sum for the year. When you leave you have to get this settled. If you have already paid for the year and won't be here the remainder then they owe you money and vice versa if you haven't paid them. It's not like the states where they withdraw your taxes from your montly pay check.
You are also required to file taxes in the U.S. as well by April 15th of every year, but I think expat have an extension or can get one. I would recommend getting a good CPA that knows how to file for you living abroad. Chances are since Pres. Bush pass that law requiring people who live abroad to pay higher taxes beyond earning of $84,500.00USD (That includes your salary, housing allowance, kids in school if you have any etc.) you will be owing Mr. Bush some some money. Unless you have tax equalization from your company of course then you have nothing to worry about.
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crj
20 yrs ago
Regarding the USA tax situation.
If you need tax advise, try Caroline and Gary at Mint Tax. I have used them for the past two years for my USA tax and have been very impressed with their level of dedication and customer service. They also can advise on HK tax, although they try to focus on USA.
They advertise on this site in the A-Z
Mint Tax Consulting Limited
Address: 1805 Wheelock House
20 Pedder Street
Central
Hong Kong
Phone: (852) 2987-9821
Fax: (852) 2987-0685
Email: caroline@mint-tax.com
Website: http://www.mint-tax.com
Information: Mint Tax Consulting provides expatriate tax planning and compliance services, mainly on U.S. and Hong Kong individual taxes.
What distinguishes Mint Tax from others is its exceptional focus on its clients and its offering of combined services on "tax" and "assignment consulting".
"Our best minds will take your business to heart"
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TC
20 yrs ago
cara,
Agreed on the differentiation between 'income' and 'salaraies' but I don't think that differentiation applies to the specific question.
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