Tax Obligation if Absent from Hong Kong - 04/16/02
Question
I was employed and resided in Hong Kong as an expartiate from Oct 2000 until July 2001. My position was then made redundant, however per the terms of my contract I have continued to be paid a monthly salary and living allowance. This will cease July 2002. These payments have been wire transfered into my Hong Kong bank account and then I have repatriated funds out of Hong Kong as and when needed. I have most probably spent no more than eight weeks in Hong Kong during the 2001 - 2002 Hong Kong financial year. Due to me spending approximately 10 months out of Hong Kong during the 2001 -2002 financial year can you please advise my Hong Kong tax obligation if any? Thank you
Answer
Salaries Tax is charged for each year of assessment on individuals in respect of income arising in or derived from Hong Kong which is received or receivable during the year, irrespective of the location of payment.
A claim for full or partial exemption of income may be made on the following grounds:-
1. no service was rendered in Hong Kong;
2. services were rendered in Hong Kong during visits not exceeding a total of 60 days during the year;
3. only income from services rendered in Hong Kong should be assessed (under a foreign employment); or
4. part of the income has been subject to tax in another jurisdiction.