60 Days - Tax limit in HK
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60 Days - Tax limit in HK
I am seeking clarification about what constitutes a day in Hong Kong for tax planning purposes.
On the Inland Revenue Dept website, they talk about the ablility to be exempt from income tax if you spend less than 60 calendar days in Hong Kong. Their description:
This exemption is generally available to employees irrespective of the locality of the employment. Attending trainings, meetings or reporting in Hong Kong is regarded as services rendered in Hong Kong for the purpose of the exemption. You are exempt from Salaries Tax for a year of assessment if you rendered all your services outside Hong Kong in that year of assessment, unless you are a civil servant, or a crew member of a ship or an aircraft. Income from services rendered in Hong Kong during visits not exceeding a total of 60 days in the year is also excluded from tax.
Visit means a short or temporary stay. Whether the nature of a trip to Hong Kong made by a Hong Kong resident is "visit" or not depends on the circumstances of each case. In general, if a Hong Kong resident has a work base in a foreign country and is required to render services there as a permanent employee, the person's occasional return to Hong Kong will be recognized as a "visit".
In deciding whether visits to Hong Kong exceed a total of 60 days, the "days of presence" are counted. A day is counted although you may be present in Hong Kong for part of the day only. Therefore, the day of departure from Hong Kong and the day of arrival to Hong Kong are counted as two days. This exemption is generally available to employees irrespective of the locality of the employment. Attending trainings, meetings or reporting in Hong Kong is regarded as services rendered in Hong Kong for the purpose of the exemption. You are exempt from Salaries Tax for a year of assessment if you rendered all your services outside Hong Kong in that year of assessment, unless you are a civil servant, or a crew member of a ship or an aircraft. Income from services rendered in Hong Kong during visits not exceeding a total of 60 days in the year is also excluded from tax.
I hear about guys getting close to the 60 day limt going to Macau or Shenzhen to avoid a day in Hong Kong. My question is if you arrive in HK on a given day, but then depart for Macau that same day, essentially transiting HK, does this day count toward the 60?
Thanks in advance for any clarification.
On the Inland Revenue Dept website, they talk about the ablility to be exempt from income tax if you spend less than 60 calendar days in Hong Kong. Their description:
This exemption is generally available to employees irrespective of the locality of the employment. Attending trainings, meetings or reporting in Hong Kong is regarded as services rendered in Hong Kong for the purpose of the exemption. You are exempt from Salaries Tax for a year of assessment if you rendered all your services outside Hong Kong in that year of assessment, unless you are a civil servant, or a crew member of a ship or an aircraft. Income from services rendered in Hong Kong during visits not exceeding a total of 60 days in the year is also excluded from tax.
Visit means a short or temporary stay. Whether the nature of a trip to Hong Kong made by a Hong Kong resident is "visit" or not depends on the circumstances of each case. In general, if a Hong Kong resident has a work base in a foreign country and is required to render services there as a permanent employee, the person's occasional return to Hong Kong will be recognized as a "visit".
In deciding whether visits to Hong Kong exceed a total of 60 days, the "days of presence" are counted. A day is counted although you may be present in Hong Kong for part of the day only. Therefore, the day of departure from Hong Kong and the day of arrival to Hong Kong are counted as two days. This exemption is generally available to employees irrespective of the locality of the employment. Attending trainings, meetings or reporting in Hong Kong is regarded as services rendered in Hong Kong for the purpose of the exemption. You are exempt from Salaries Tax for a year of assessment if you rendered all your services outside Hong Kong in that year of assessment, unless you are a civil servant, or a crew member of a ship or an aircraft. Income from services rendered in Hong Kong during visits not exceeding a total of 60 days in the year is also excluded from tax.
I hear about guys getting close to the 60 day limt going to Macau or Shenzhen to avoid a day in Hong Kong. My question is if you arrive in HK on a given day, but then depart for Macau that same day, essentially transiting HK, does this day count toward the 60?
Thanks in advance for any clarification.
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File the exemption
If you live and reside outside HK and pay tax to another country ie; the USA, you can file a total exemption. I have done it two years now and IRD has not bothered me. Don't know why everyone gives their hard earned money to HK but what do I know.
If you choose to pay the IRD you get a credit for what you paid in HK. Make sure your country has a tax treaty with the IRD. Some Canadians are having some difficult times now with the former tax treaty and all so do your research or just ignore everything i've said. Toode loo
If you choose to pay the IRD you get a credit for what you paid in HK. Make sure your country has a tax treaty with the IRD. Some Canadians are having some difficult times now with the former tax treaty and all so do your research or just ignore everything i've said. Toode loo
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Just one minute of a day counts as a tax day. The fact that you depart to Macau on the same day means nothing as you have passed through immigration into HKG, therefore you clock up 1 day!
Therefore, the day of departure from Hong Kong and the day of arrival to Hong Kong are counted as two days.
My question is if you arrive in HK on a given day, but then depart for Macau that same day, essentially transiting HK, does this day count toward the 60?
