2024-05-31Introduction to Hong Kong Salaries Tax
1. |
If the source of employment is located in Hong Kong, an employee’s any income derived from that employment falls within the basic charge to Salaries Tax, except in the basis period of a year of assessment render all his/her services outside Hong Kong, or services rendered during his/her visit to Hong Kong not exceeding a total of 60 days in the basis period of a year of assessment. If any income earned for services rendered outside Hong Kong is chargeable to tax of substantially the same nature as Hong Kong Salaries Tax in that territory and the tax have been paid by the employee, then that part of the income will be exempt from salaries tax under section 8(1A)(c) of Hong Kong Inland Revenue Ordinance. However, if the employee has paid tax in a territory outside Hong Kong which has made a comprehensive avoidance of double taxation agreement or arrangement with Hong Kong in respect of his/her income derived from services rendered in that territory. With the support of evidence of foreign tax payment, the foreign tax paid will be allowed as a credit against Hong Kong tax payable in respect of the income concerned under section 50 of Hong Kong Inland Revenue Ordinance. |
2. |
Employee with a non-Hong Kong employment are only subject to salaries tax on that part of their income which is derived from services performed in Hong Kong. The Inland Revenue Department will usually look at the number of days an employee spent in Hong Kong and apportion his/her remuneration on a time-in time-out basis. The employee who renders services in Hong Kong during visits for not more than a total of 60 days in the basis period of a year of assessment will have no liability to Hong Kong Salaries Tax. |
1. |
Where the contract of employment was negotiated and entered into, and is enforceable, whether in Hong Kong or outside Hong Kong; |
2. |
Where the employer is resident, whether in Hong Kong or outside Hong Kong; and |
3. |
Where the employee’s remuneration is paid to him, whether in Hong Kong or outside Hong Kong. |
1. |
the benefit is not in the form of "money or money's worth"; |
2. |
in the case of a payment made by the employer for the benefit of an employee, the employer (and not the employee) has the primary obligation to pay for the benefit and no other person has guaranteed payment; |
3. |
the benefit is not in connection with the education of a child of the employee; or |
4. |
the benefit is not in connection with a holiday journey. |
Deduction Items |
2019/20 onwards (HK$) |
2018/19 (HK$) |
Expenses of Self-Education |
100,000 |
100,000 |
Elderly Residential Care Expense(To be paid to home care center) |
100,000 |
100,000 |
Home Loan Interest |
100,000 |
100,000 |
Mandatory Contributions to Recognized Retirement Schemes |
18,000 |
18,000 |
Qualifying Premiums Paid under Voluntary Health Insurance Scheme (VHIS) Policy (For each insured person) |
8,000 |
- |
Qualifying Annuity Premiums and Tax Deductions MPF Voluntary Contributions |
60,000 |
- |
Approved Charitable Donations [ (Income– Allowable Expenses – Depreciation Allowances) x Percentage] |
35% |
35% |
Allowance Items |
Amount(HK$) |
|
Basic Allowance |
132,000 |
|
Married Person’s allowance |
264,000 |
|
Child Allowance |
||
For each of the 1st to 9th Child |
120,000 |
|
Extra allowance for each child born during the year |
120,000 |
|
Dependent Parent and Dependent Grandparent Allowance (for each dependant) |
||
Parent/grandparent aged 55 or above but below 60 |
25,000 |
|
Parent/grandparent aged 60 or above or is eligible to claim an allowance under the Government’s Disability Allowance Scheme |
50,000 |
|
Additional Dependent Parent and Dependent Grandparent Allowance |
||
Parent/grandparent aged 55 or above but below 60 |
25,000 |
|
Parent/grandparent aged 60 or above or is eligible to claim an allowance under the Government’s Disability Allowance Scheme |
50,000 |
|
Dependent Brother or Sister Allowance (for each dependant) |
37,500 |
|
Single Parent Allowance |
132,000 |
|
Disabled Dependant Allowance (For each dependant) |
75,000 |
|
Personal Disability Allowance |
75,000 |
Net chargeable income (HK$) |
Tax Rate |
Tax Payable (HK$) |
On the first 50,000 |
2% |
1,000 |
On the next 50,000 |
6% |
3,000 |
On the next 50,000 |
10% |
5,000 |
On the next 50,000 |
14% |
7,000 |
Remainder |
17% |
|
- https://www.gov.hk/en/residents/taxes/salaries/salariestax/chargeable/index.htm
- https://www.ird.gov.hk/eng/pdf/dipn10.pdf
- https://www.ird.gov.hk/eng/tax/ind_ctr.htm
- https://www.gov.hk/en/residents/taxes/etax/services/tax_computation.htm
- https://www.gov.hk/en/residents/taxes/taxfiling/taxrates/salariesrates.htm
- https://www.gov.hk/en/residents/taxes/salaries/allowances/deductions/index.htm
- https://www.gov.hk/en/residents/taxes/salaries/allowances/allowances/index.htm
- https://www.ird.gov.hk/eng/pdf/pam61e.pdf
- https://www.gov.hk/en/residents/taxes/salaries/salariestax/exemption/employee.htm