Employees, Office Holders and Self-Employed

Salaries Tax

As a non-resident working in Hong Kong, you are liable to salaries tax. Salaries Tax is charged on every person in respect of his income arising in or derived from Hong Kong from any office or employment of profit and any pension. Income includes all income, perquisites and fringe benefits from the employer or others. Residents and non-residents may also be liable to salaries tax in Hong Kong and are taxed in the same way.

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Profits Tax for the Self-employed

If your income is derived from the buying and selling of goods, or from providing professional or personal services, you are considered as carrying on a trade, business or profession and a self-employed person.

As a self-employed person, you are chargeable to profits tax on the assessable profits of your sole proprietorship or partnership business. You should keep sufficient business records for at least 7 years, and notify the Inland Revenue Department (IRD) in writing about any changes in the status of your business.

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Tax Obligations for Non-residents Working in Hong Kong

As a non-resident working or holding an office in Hong Kong, you are liable to salaries tax but not all the income is chargeable. Incomes such as severance payments and long service payments are not chargeable.

If you are chargeable to tax for any year of assessment, you must notify the IRD in writing not later than 4 months after the end of the basis period for the year in which you are so chargeable unless you have already received a return from the IRD.

Besides, the IRO provides that any person chargeable to tax and intending to leave Hong Kong shall notify the IRD not later than 1 month before the expected date of departure. Upon receipt of the notification, IRD will decide whether the person leaving is required to settle all tax liabilities prior to departure.

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Tax Payment

You can pay tax by various means. Electronic tax payment is becoming more popular and convenient. You can pay tax electronically by phone (with PPS account), Internet or bank Automatic Teller Machine (ATM). You can even pay tax from overseas, whether or not you have an account with a Hong Kong bank.

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Last review date: June 2016