hong Kong taxes for aircrew

[gegepilot]

anybody familiar with HK taxes for aircrew and the 60 days rules? i heard if u r based in HK and spend less than 60 days/year and 120 days/2 years in HK you are exempted of taxes...thanks to share your experiences and infos.

[Rice power]

www.hkird.gov.hk

[gegepilot]

thanks...been looking at their website a lot but this 60 days rule is confusing....if my aircraft is based in HK and i get paid in HK but spend less than 60 days/year in HK as crew member, can i file for tax exemption? anybody heard anything about it? thanks

[Sqwak7700]

No, you can't. I believe the exemption if for HK employed but based elsewhere. You sound like you are based in HK but commuting, they'll hit you up for the full enchilada.

Some people that were trying to use the various loopholes where hit up retroactively. It did not matter that they were acting on rulings provided by the IRD in advance, the reason given by the IRD was "we evaluated your case and we changed our minds".

So what you might get from one IRD inspector might turn out to be reversed by another upon later audit. So just be aware that it has happened before.

[gegepilot]

thanks...it is just what is happening to me now after 3 1/2 years working in HK as private pilot and spending less than 60 days/year in HK...just found out i have to pay 3 years at about 200K HKD/year....
but in their assessments they wrote i can not file for tax exemption because i spent more than 60 days/years in HK...but i have HK immigration travel records that clearly show that i spent less than 60 days/year in HK...
i will go there monday morning to deal with it...

[Flying Clog]

Gegepilot, you're stuffed as you were, in fact, based in Hong Kong. Just do a runner, simples, I would...

[gegepilot]

the 60 days rule apply for crewship and aircrew also based in hk...in my case they wrote i am spending more than 60 days/year in HK so i cant get tax exemption..but my HK immigration statement travel records show that i spend less than 60 days each year...u can be based in HK and spend most of your days travelling the world in a ship or airplane and spend very little time in HK...it is why they created that exemption...

[crwkunt roll]

Working as a private pilot?

[gegepilot]

private airplane...private pilot...

[b747heavy]

According to a Court of Appeals decision back in 2009, the word "presence" in HK, for the purpose of aircrew, means as soon as the wheels touch the runway regardless of passing through immigration or not. Stay airside and leave HK, you are deemed to be in HK no matter having passed immigration. Arrive 2359, depart 0001, two days in HK....The immigration report you have may not correctly reflect the days you spent in HK, as far as the IRD are concerned.

The transcript of that case is available online, i don't have the link available, but its there.

If you are officially based in HK via contract and salary paid in HK, then i think chances are slim that you can be ruled exempt?

standing by to be corrected

[Flying Mechanic]

I know a good immigration lawyer if you need one, I am currently using his services.

[crwkunt roll]

My point was if you are a "private pilot" you should not be earning any income so you should not be taxed at all. If you are however earning a salary as a pilot on a Hong Kong base, you are indeed a Commercial pilot and will be asked for all of the tax. Whether they give you a refund for being away so much, it's up to them. Don't sell yourself short.

[gegepilot]

thanks for your reply....the past 4 years i have been spending less than 60 days in HK to qualify for tax exemption as aircrew....HK tax department always accepted it...for exemple my HK immigration travel record shows that i spend 47 days in 2011-12 and 38 days in 2012-13...i fly a private airplane based at HK airport, i live outside HK and always go to HK the very same day i have to work and always leave HK the very same day i land in HK after a trip....now they want me to pay all back taxes, over 600K HKD..lately they got my roster from my work but my work dont know where i go after i land in HK after a trip, i guess tax department think i live in HK between trips and cant be bothered to use my immigration travel records that clearly show that i am in HK less than 60 days/year...i always go to shenzhen china and seat sit there...so im fighting it because as long as i am in HK less than 60 days/year via immigration records i should qualify for exemption..what do you thinK?

[BuzzBox]

Are you a mainland resident? If so:

1. Remuneration derived by a resident of the Mainland from an employment exercised in Hong Kong is chargeable to Salaries Tax in Hong Kong. However, the Mainland resident will be exempt from Salaries Tax if all the following three conditions are satisfied:

1(a) he is present in Hong Kong for a period or periods not exceeding in the aggregate 183 days in any 12-month period commencing or ending in the year of assessment concerned (please refer to paragraphs 15 to 18 below for details of the “Present for not exceeding 183 days” exemption condition);

(b) the remuneration is paid by, or on behalf of, an employer who is not a resident of Hong Kong; and

(c) the remuneration is not borne by a permanent establishment which the employer has in Hong Kong.

2. Where a Mainland resident renders employment services in Hong Kong but does not meet any of the conditions mentioned in paragraphs 1(a) to 1(c) above (e.g. his remuneration is paid by a Hong Kong employer), he will still be exempt under Hong Kong taxation law from Salaries Tax if his visit to Hong Kong in the year of assessment concerned does not exceed a total of 60 days.

As far as HKIRD are concerned, you are employed in Hong Kong and are therefore taxable in Hong Kong. It's up to you to claim an exemption by completing a tax return and providing documentary proof that you are eligible for the exemption.

[gegepilot]

i filed for objection....what would happen if i move back to france for good and not pay the assessments?...i filed for tax exemption the past 3 years and it was accepted...only last month they ask me to pay...
yhanks