Oz based, paying Tax in HK.
 

Hi guys.

Just wondering about HK tax. I have heard a couple of guys have successfully had their HK tax refunded since the ATO hearing, and no longer pay tax in Honkers. Can anyone provide more info or shed any light on how to go about it? Is it simply a matter of filing a "nil return", and ticking the "final return" box?

Appreciate any thoughts or info.

All the best,

Flyboy - try looking here:

http://www.ird.gov.hk/eng/pdf/e_dipn10.pdf

Page 17 - Ship and Aircraft Personnel.

Generally OZ based guys spend more than 60 days per annum in HKG and the base has not been onshored so I think they still have to pay HK tax - would love to find out if this is not true and therefore the admin. of having to do HK tax as well would vanish.

Cheers MC.

I thought the same as you, however I have heard (third hand albeit) that a couple of guys have managed to get around it. It'd be a $ net gain of zero, but a 'pain in the arse' net gain of lots.

I'll keep digging,

In addition, having just read the back of the "guide to tax returns", it says:

"You may apply for a full or partial exemtion from salaries tax in ANY of the following situations:

A) blah
B)blah
C) If Your income has been charged to a tax territory outside of HK and the tax is of substantially the same nature as HK salaries tax, the relevant income is excluded from charge per section 8(1A)(c)
D) air crew 60 days blah

Flyboy007

Thanks - I looked up CAP112 section 8 here:
Cap 112 s 8 Charge of salaries tax

It says what your pamphlet said - I have emailed IRD to see what they say about our(?) situation

Great. Let me know how it goes. I'm chasing it up too, so here's to getting a result before the Return is due.

Cheers

Federal Government Consultation on Income Tax Exemption for Australians Abroad
 

Dear XXXXX,

The Federal Government is undertaking an important consultation that may be of great interest to you. Advance will be commenting on the legislation and we take this opportunity to forward you this information if you also wish to comment.

Better targeting the income tax exemption for Australians working overseas

The Treasurer, the Hon Wayne Swan, has released exposure draft legislation to amend the current general income tax exemption for income earned in overseas employment. The exposure draft legislation implements announced changes to better target the exemption (provided by section 23AG of the Income Tax Assessment Act 1936).

Interested parties are invited to comment on the exposure draft legislation. While submissions may be lodged electronically or by post, electronic lodgement is preferred. For accessibility reasons, please submit responses sent via email in a Word or RTF format. An additional PDF version may also be submitted.

All information (including name and address details) contained in submissions will be made available to the public on the Treasury website unless you indicate that you would like all or part of your submission to remain in confidence. Automatically generated confidentiality statements in emails do not suffice for this purpose. Respondents who would like part of their submission to remain in confidence, should provide this information marked as such in a separate attachment. A request made under the Freedom of Information Act 1982 (Commonwealth) for a submission marked 'confidential' to be made available will be determined in accordance with that Act.

Please go to www.treasury.gov.au for background information and exposure draft legislation.

Closing date for submissions: Monday, 18 May 2009

Address written submissions to:

The Manager
International Tax Unit
International Tax and Treaties Division
The Treasury
Langton Crescent
PARKES ACT 2600

Fax: (02) 6263 4352

Email: [email protected]

For inquiries, please call Greg Wood (02) 6263 3329

Kind Regards,
The Advance Team

Guys this is only if you are a "Tax resident " of Australia. If you are living overseas and paying tax overseas, this does not pertain to you.

Even if you have taxable income in Australia, you can still be a "non tax resident"

The 23 AG was there for originally set up to cater for diplomats working over seas or for army personnel based outside of Australia, which after 90 days abroad could stop paying tax.

All they are going to do is stop 23 AG, they are not going to tax your world wide income!!!! so stop the panic!!!!!:ok:

Guys, don't be complacent about this. I have it on good authority that this is only the first stage of the governments tax law changes. They ARE planning to tax world-wide income, just as the US government does. Start putting your assets where they can't get at them. :mad:

Master Caution,

Did you ever get a reply from the HKIRD? I'm still waiting. Might try a phone call when next up.