The personal tax system in Hong Kong is “progressive”. This means the more a person earns, the higher the rate of tax that they pay on their chargeable income.
Individuals are only taxed on income earned in Hong Kong. This is because Hong Kong has a “territorial” system of taxation. In determining chargeable income upon which to pay tax, Hong Kong law allows an individual to make certain deductions from their income received.
Examples of such deductions are qualified employment related expenses such as certain business travel, subscriptions to professional societies, self-education expenses and amounts paid to approved charities.
In addition, Hong Kong law allows an individual to deduct certain allowances in determining chargeable income, such as a married person’s allowance, child allowance and dependent brother/sister/parent or grandparent allowance.
The advice and guidance of a tax professional is suggested to all expats moving to Hong Kong who anticipate earning personal income.
Our Hong Kong E-Team member will assist you in navigating all aspects of the Hong Kong tax system.
CST Tax Advisors
A member firm of the CST International network, we deliver specialist tax advice and chartered accounting services to private clients, family groups and international enterprises.
CST Tax Advisors currently provides tax and accounting services to expatriates from all over the globe including Australia, the UK,Europe, the United States and other parts of Asia.
To know more about CST Tax Advisors, please see contact details below:
Contact person: John Marcarian
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