Conditions for Hong Kong immigrants to pay taxes

Although the rich know that Hong Kong is a tax haven, they still have doubts about the specific tax policy of Hong Kong. New immigrants to Hong Kong need to know something about Hong Kong's tax policies. Let's take a look at the tax situation of Hong Kong immigrants with me.

In Hong Kong, personal income is subject to three taxes: salaries tax, profits tax and property tax.

I. salaries tax

In Hongkong, ordinary office workers usually only need to pay salaries tax, similar to the personal income tax in Chinese mainland. The Hong Kong Government believes that salaries tax helps to encourage those who have the ability to earn more money with light tax in a fair society. The support behind Hong Kong's low tax burden is that under a good legal system, a person deserves the wealth he has earned through hard work. Although there is no "robbing the rich to help the poor" in Hong Kong's personal income tax system, there is a tax bill tailored for everyone behind it, and salaries tax plays a humanized and fair role in Hong Kong.

Different from the monthly salary tax paid by companies in the Mainland, office workers in Hong Kong pay salaries tax in a unified way in the tax season every year and report to the Inland Revenue Department voluntarily, and the calculation method of salaries tax is relatively simple. Compared with the mainland's seven-level progressive system, Hong Kong's salaries tax is calculated at a four-level progressive tax rate of 2% to 17%, that is, the highest tax rate will not exceed 17%, while the mainland is calculated at personal income tax.

Open the "Calculation Table of Estimated Salaries Tax" of the Hong Kong Inland Revenue Department. The simple table almost takes into account the actual situation of each taxpayer. In the column of "Deduction", taxpayers can fill in the following items: personal education expenditure, approved charitable donations, compulsory public funds for approved retirement plans (equivalent to the provident fund in the Mainland), and loan interest to be borne by property buyers. In the next column, "Apply for tax allowance", the situation is more detailed. Taxpayers can declare whether they are married, the number of children they need to support, the number of parents and grandparents, whether they live with their parents, the age of their parents and so on. Each of these items corresponds to a certain amount of tax allowance. In this way, if the annual salary reaches HK$ 200,000, a middle-and lower-income family in Hong Kong, old and young, hardly needs to pay any personal income tax a year.

In the various taxes levied on personal income in Hong Kong, the cost paid by taxpayers to obtain taxable income, related education, housing and the taxpayer's own family situation are considered. Although the calculation method is complicated and the government has made great efforts, ordinary people have been treated fairly and reasonably.

Two. profit tax

People who need to pay profits tax:

A. The person must be engaged in a trade, profession or business in Hong Kong;

B taxable profits must come from the trade, profession or business that the person is engaged in in in hong kong;

C profits must be generated in or derived from hong kong.

According to Chapter 1 12 of the Laws of Hong Kong and Section 14 of the Inland Revenue Ordinance, any person who engages in commercial activities (including trades, professions or businesses) in Hong Kong shall calculate the net income of such activities in each year of assessment, and after deducting the deductible expenses, it shall be calculated at the standard profit tax rate in Hong Kong.

Compared with salaries tax, salaries tax can be deducted, and the tax rate of the first $97,500 after tax allowance is less than 65,438+05.5%. Therefore, it is more advantageous to pay salaries tax than profits tax. However, the subsequent tax rate is 18.5%, which is higher than the profit tax, and it is more favorable to pay the profit tax.

Third, property tax.

Hong Kong property tax is a tax levied on the rental income of owners' properties (land and buildings). A limited company rents out the property it owns, and the income from it can be exempted from property tax, but only needs to pay profits tax.

The tax basis of property tax is the net assessable value, that is, the balance after deducting the rates paid by the owners and the 20% maintenance expense allowance. If the house rent cannot be recovered, it can be deducted, but the rent recovered later must be taxed in the recovery year.

Hong Kong is a global financial center and a world-class tax haven. The Hong Kong Government relies on Hong Kong's strict and fair legal system and tax system to enable all Hong Kong residents to make a living and settle down.