| |
HK Tax Facts
Salaries Tax Rates
| Year of Assessment |
2015/16 |
2016/17 |
2017/18 |
| The lesser of the tax calculated: |
- On Net Chargeable Income
(without Personal Allowances) at |
15% |
15% |
15% |
| OR |
- On Net Chargeable Income
(after deducting Personal Allowances) where the |
| - First |
40,000 |
2% |
40,000 |
2% |
40,000 |
2% |
| - Next |
40,000 |
7% |
40,000 |
7% |
40,000 |
7% |
| - Next |
40,000 |
12% |
40,000 |
12% |
40,000 |
12% |
| - Remainder |
|
17% |
|
17% |
|
17% |
Salaries Tax Reporting
The most common occassions when an employee needs to report to the Hong Kong Inland Revenue Department (IRD):
- Upon receipt of a Salaries Tax Return (usually issued by the IRD in May).
- If the employee has not received a Salaries Tax Return, the employee must inform the IRD within 4 months of the end of the tax year in which (s)he received income.
- Upon cessation (without leaving HK), within 1 month of the cessation of employment.
- Upon cessation (when leaving HK for longer than a month), 1 month prior to the departure date.
|
Salaries Tax Payments
Key facts about the payment of Hong Kong Salaries Tax are listed below:
- Salaries tax is not withheld by employers.
- Once the annual tax reporting of individual salaries has been made by the end of May, the IRD will normally issue an assessment anytime between August and December of that year.
- The Assessment will state the amount of tax to pay and the payment due dates.
- Provisional tax is also charged for the following tax year.
- This means that on the first occassion tax is being paid effectively 2 years tax is being paid in one go. Tax for the year being assessed is usually due for payment in the January following the issuance of the assessment
- 75% of the provisional tax is due at the same time as above, whereas the remaining 25% is usually due 3 months later in April
|
|
