HKG taxes for US Based FO
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HKG taxes for US Based FO
Just got my first HKG IRD tax return...
I am a US citizen & resident withholding US taxes. My desire is to only pay US and claim exempt from HKG.
On the exemption form for "taxes paid outside HKG" it also asks for days in HKG. Do I need to put that down? It is probably over 60 days because of initial training... does that matter w/ this exemption (taxes paid to USA)?
Also, if I need my days in HKG, who do I contact at CX?
Thanks in advance
I am a US citizen & resident withholding US taxes. My desire is to only pay US and claim exempt from HKG.
On the exemption form for "taxes paid outside HKG" it also asks for days in HKG. Do I need to put that down? It is probably over 60 days because of initial training... does that matter w/ this exemption (taxes paid to USA)?
Also, if I need my days in HKG, who do I contact at CX?
Thanks in advance
Last edited by Waterskier; 20th Oct 2009 at 21:06.
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Days in HKG
You'll probably have to put the days down as I think the IRD use that number as the basis for any tax liability.
As far as days in HKG go, try Ricky in Ops Data Control. He should be able print off your past rosters in a text file so you'll be able to count the days you were in HKG.
If you have any problems finding him, PM me and I'll send you his Groupwise address.
STP
As far as days in HKG go, try Ricky in Ops Data Control. He should be able print off your past rosters in a text file so you'll be able to count the days you were in HKG.
If you have any problems finding him, PM me and I'll send you his Groupwise address.
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Go to the IRD and get some help
You do not need to pay HKG taxes if you are paying in the US. Get the information on your days in HKG so you can tell the IRD the number of days. Next, bring all your tax information with you to HKG - W2, CX paystubs ect. to prove you have been paying US taxes and head down the IRD in Wan Chai. Apparently you did not fill out the form correctly this summer and they are sending you a bill. I went down to the IRD office and met with and inspector, they sent me to see an auditor on another floor, and she helped me fill out the tax return correctly. They were very nice and helpful.
You can pay the US tax and claim it back on your US tax return, I did that the first year, then filed an exemption after that - filling out the tax return. The 60-day rule doesn't matter as long as you prove you pay taxes in the US. This has worked for me for the last 2-years.
You can pay the US tax and claim it back on your US tax return, I did that the first year, then filed an exemption after that - filling out the tax return. The 60-day rule doesn't matter as long as you prove you pay taxes in the US. This has worked for me for the last 2-years.
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I agree with Joe Jet except I plan on staying away from the IRD. I just got the same exact 'info' form you did. I will copy all paystubs, W2's and tax reciepts from 2008 and so far for 2009. I am not filling in the number of days I was in HK. I am going to send it return receipt to HK and let the jokers in wan chai figure it out. As long as you have proof of paying in the US it should all take care of itself. BTW, I believe that it depends on the assessor that recieves your info on how easy this becomes. I have never paid a dime to HK, however, one guy I started with also from the US has received a HK tax bill for like 40,000HKD's and we filled out the HK tax form identically! Its a screwy system but overall if you pay in the US, you don't need to
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The "60 day rule" and the exemption for taxes paid in another country are two different things. The 60 days is for an exemption allowed to crew of aircraft and ships who spend limited time in HK, while the exemption for taxes paid to another country with tax treaty is just that.....a different exemption. You likely won't qualify for the ship/aircraft crew exemption, but should be able to avoid "dual taxation" based on tax treaty. My understanding at least.
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For the last several years
I have submitted my W-2's and claimed exemption both under the 60-day rule as well as the U.S. tax paid rule in that both applied (I was in HK less than 60 days as well as paid more U.S. tax than would have been my HK tax liability). They did ask for my full-up U.S. tax returns on two occasions (which I provided); otherwise they have left me alone. I do not hold (and was informed I was not eligible for--when I went to the issuing authority) a HK ID card.
If you've gone over the 60 days you can still claim exemption for U.S. tax paid. If you've paid the HK tax already you might be eligible for a refund if you also have paid U.S. tax (or can claim on your U.S. 1040 for foreign tax paid). It's a little bit of a pain because the tax years do not run concurrently.
I HAVE heard of the IRD taxing the actual portion of time spent in HK if the days exceed 60 days, but I'm not sure if it was because the individual in question didn't fully explain or prove he had paid US tax on the amount--if this did happen you could claim the HK tax on your 1040 but it would again complicate your taxes.
Every year I have filled out the IRD form in its entirety and claimed full exemption (under both provisions) while also submitting a letter with the form explaining why and how.
I've had some friends though who've gotten a bill and had to go to IRD to clear it up.
It seems they are pretty easy to deal with over the phone or in person, but they did lose my 1040 one year and I had to re-submit. I think some of it might depend on who you talk to.
As long as you've legitimately paid U.S. taxes you should get relief under the no double taxation rule. Alternatively you could pay the HK tax and claim foreign tax exemption on your U.S. 1040 (but this is more complicated for your taxes, the exemption has some caps if you make too much money, and you can expect with the current socialistic (communistic if you prefer) U.S. political regime for tax credits in the U.S. to dwindle in the future).
If you've gone over the 60 days you can still claim exemption for U.S. tax paid. If you've paid the HK tax already you might be eligible for a refund if you also have paid U.S. tax (or can claim on your U.S. 1040 for foreign tax paid). It's a little bit of a pain because the tax years do not run concurrently.
I HAVE heard of the IRD taxing the actual portion of time spent in HK if the days exceed 60 days, but I'm not sure if it was because the individual in question didn't fully explain or prove he had paid US tax on the amount--if this did happen you could claim the HK tax on your 1040 but it would again complicate your taxes.
Every year I have filled out the IRD form in its entirety and claimed full exemption (under both provisions) while also submitting a letter with the form explaining why and how.
I've had some friends though who've gotten a bill and had to go to IRD to clear it up.
It seems they are pretty easy to deal with over the phone or in person, but they did lose my 1040 one year and I had to re-submit. I think some of it might depend on who you talk to.
As long as you've legitimately paid U.S. taxes you should get relief under the no double taxation rule. Alternatively you could pay the HK tax and claim foreign tax exemption on your U.S. 1040 (but this is more complicated for your taxes, the exemption has some caps if you make too much money, and you can expect with the current socialistic (communistic if you prefer) U.S. political regime for tax credits in the U.S. to dwindle in the future).
Last edited by Shep69; 1st Nov 2009 at 01:32.
