Employee Tax Obligations

Most individual taxpayers in Hong Kong who receive income from an office, employment or pension are charged salaries tax. This article will tell you whether you need to pay salaries tax, what to do when paying it and the types of notice you need to give the Inland Revenue Department when your circumstances change.

Do I Need to Pay Salaries Tax?

You can be charged salaries tax on your income arising in or derived from Hong Kong from any employment, office, and pension. If you receive a tax return from the Inland Revenue Department, you must complete and submit it by the due date for filing even if you have no income that can be charged to salaries tax.

If you work for yourself and are not an employee, you are considered to be self-employed and can be charged profits tax instead.

The Tax-paying Process

When you receive your Tax Return – Individuals (BIR60) you should complete and submit it by the due date for filing, and then pay the tax at the specified time after you receive your notice of assessment. If you do not receive a tax return you should notify the Inland Revenue Department that your income could be chargeable to tax.

Notification of Changed Circumstances

You should notify the Inland Revenue Department if you have changed your address as listed on your tax return or will soon be leaving Hong Kong for longer than a month. You should give notification of change of address as soon as possible but no later than one month after the change. If you are leaving Hong Kong for longer than a month you should give notice one month before your departure.