Mark Six:
I have been paying tax in HK since 1990 and stand by what I posted. If you profess to know so much about HK taxation, I'm wondering why you appear to be paying over the top.
If you are married, have two kids, and after the threshold and/or all deductions are paying 15% of your income, something is wrong. I did make a mistake in saying it would be 8% of assessable income, when it works out at 8% of actual income. Apologies (and corrected in my above post), i.e. less than one month's pay.
Of course your employer can only withold your last month's salary (plus any bonuses) - he would have already paid your earlier salaries - it's pretty obivous. However, if your last salary owing is less than your probable tax liability, the employer will have to withold additional moneys owing to you, if available.
Do you actually understand the term pro rata? First you write that tax is not levied pro rata if employment is terminated in the course of a tax year, then go on to say it is calculated based on the amount earned in the course of the incomplete tax year. That is exactly the meaning of pro rata - i.e. you do not pay on the annualised amount, but the actual fraction of your annual pay.
Last edited by Alpha Leader; 30th May 2002 at 22:55.