Salaries Tax

Personal salaries tax in Hong Kong may not be as straightforward as one may think. There are various tax reporting and notification obligations with stipulated deadlines imposed to different parties, including employer and employee, under the Hong Kong tax law. Individual taxpayers may also mitigate their tax burden by claiming tax deductions, personal allowances and/or exemptions provided in local tax regulation or double tax treaty.

Salaries Tax

We can assist with providing tax advisory services to both employer and individuals regarding their personal tax obligations. In addition, we can review and explore for clients opportunities for reducing the tax liability in a legal and acceptable way as well as avoiding legal consequences for filling an incorrect tax return without reasonable excuse.

If necessary, we can assist our clients to prepare tax projections where their can well manage the cash flow for tax payment in advance. In summary, we can assist with:

• Individual Tax Returns
• Employer's tax filings
• Lodging objections against the tax assessments
• Handling tax enquiries from the tax authorities
• Housing allowance / rental reimbursement programs

Similarly, we can assist you with Mainland taxes such as China income taxes and global mobility tax issues.

Tax Clearance Services

According to the Inland Revenue Ordinance, where an individual, who is chargeable to tax, intends to depart from Hong Kong for good or for a period exceeding one month, he/she is obliged to notify the Hong Kong Inland Revenue Department (IRD) not later than 1 month before the expected date of departure and clear all the tax issues with the IRD before his/her departure.

His/her employer also has the informing obligation by filing the Form IR 56G to the IRD also not later than 1 month before the expected date of departure.

Our Hong Kong tax professionals can assist with the following:

For individuals

• Preparing and submitting a letter to the IRD to notify his/her departure from Hong Kong;
• Preparing and filing all the outstanding individual tax returns and tax computations to the IRD;
• Handling tax enquiries raised by the IRD;
• Applying for tax clearance and letter of release with the IRD; and
• Assisting in arranging withdrawal of contributions made to the mandatory provident fund (MPF) scheme in Hong Kong.

For employers

• Preparing and submitting the Employer's Return (Form IR 56G) to the IRD;
• Handling tax enquiries raised by the IRD in respect of the employees; and
• Arranging the MPF issues.