What is taxable income in Hong Kong?

What is taxable income in Hong Kong?

Personal income tax (salaries tax) rates

Net taxable income (HKD) Tax on column 1 (HKD)
0 50,000
50,000 100,000 1,000
100,000 150,000 4,000
150,000 200,000 9,000

Are bonuses taxed in Hong Kong?

Examples of assessable income include commission and rebates, bonuses, leave pay, end of contract gratuities and payments in lieu of notice accrued on or after 1 April 2012. Only a few types of payments are exempt.

Does Hong Kong tax interest income?

Hong Kong sourced interest income received by or accrued to a corporation carrying on a trade or business in Hong Kong SAR is subject to profits tax. This exemption, however, does not apply to interest accruing to a financial institution.

Is relocation allowance taxable in Hong Kong?

HK$120,000 On the other hand, if your employer pays a cash relocation allowance or reimburses the relocation expenses incurred by you, the cash allowance or reimbursed expenses would be considered as taxable benefits and subject to Hong Kong salaries tax.

How much tax is deducted from my pension?

If your employer funded your pension plan, your pension income is taxable. Both your income from these retirement plans as well as your earned income are taxed as ordinary income at rates from 10–37%.

What is the tax rate in Hong Kong for expats?

As an expat in Hong Kong, you’re taxed on any Hong Kong sourced employment income, pension income and business profits and rental income derived from there. That said, it doesn’t matter if you’re a nonresident except in certain limited circumstances. The income tax rates range from 2% to 17%.

How is housing allowance taxed in Hong Kong?

If your employer gives you a housing allowance, you can easily reconfigure that allowance to save you money once it comes to tax time. Ordinarily Inland Revenue will tax housing at 10 percent of your income, rather than your actual rental costs — that rate of 10 percent is often less than what you pay for rent.

What amount of salary is taxable?

How to Calculate Taxable Income on Salary?

Net Income Income Tax Rate
Up to Rs.2.5 lakhs Nil
Rs.2.5 lakhs to Rs.5 lakhs 5% of (Total income – Rs.2.5 lakhs)
Rs.5 lakhs to Rs.10 lakhs Rs.25,000 + 20% of (Total income – Rs.5 lakhs)
Above Rs.10 lakhs Rs.1,12,500 + 30% of (Total income – Rs.10 lakhs)

Can I deduct referral fees?

Are referral fees tax deductible? The fees you pay another agent for a referral are tax deductible. McBroom advises agents to send the referrer a 1099 for the amount they pay for the referral.

Is a finder’s fee taxable?

For example finder’s fees are specifically excluded from been deductible if you are paying associated parties. Hi, You may claim the expenses as Other deductions, if you need to spend money to earn income, you can usually claim it – either as an immediate deduction or over time.

How much tax can you deduct on a per diem?

The payer has to deduct tax on schedular payments from the per diem allowance of $80. The payer provides you with goods and services to the value of $15 per day. Therefore the maximum amount you can be paid as a per diem without tax on schedular payments being deducted is $65 per day.

Is there a per diem rate for lodging?

There is a per diem rate for combined lodging and meal costs, and a per diem rate for meal costs alone. An employer may use either per diem method for reimbursing employee travel expenses.

Do you have to keep receipts for per diems?

If you receive $80 or less in per diems a day, you won’t need to keep your invoices and receipts for income tax purposes. Per diem payments of more than $80 per day will need to have tax on schedular payments deducted by the payer on the amount over $80 (eg, if $90 is paid, schedular payments must be deducted from $10 of the payment).

Can a self employed person use a per diem?

There is a per diem rate for combined lodging and meal costs, and a per diem rate for meal costs alone. An employer may use either per diem method for reimbursing employee travel expenses. A self-employed person can only use per diem for the meal costs. Return to top.