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──Mar 16 , 2021Sources of corporate salaries tax in Hong Kong

Hong Kong company salary tax means that the income derived from or received from the Hong Kong office, employment and retirement pension is subject to tax. The salary tax is calculated in two ways:

One is for low - and middle-income earners, the tax rate is multiplied by the tax rate15%, is measured by a progressive tax system;

One is to multiply the standard levy rate by income for people with high returns.

Hong Kong personal income tax is based on the territorial principle. Therefore, if you operate on-site in Hong Kong, the threshold for salaries tax isHKD13.2Ten thousand.

If the Hong Kong company pays ordinary workers, if the workers are long-term daily living in the Mainland, then in the case of the Hong Kong company, the salary paid by the Hong Kong company is income from the Mainland and may not be subject to salaries tax in Hong Kong. Therefore, the employee only has to fill in the salaries tax form, without paying taxes (but if the Hong Kong company pays the employee too much, the Hong Kong Tax Bureau may let the employee pay personal income tax documents).

If a Hong Kong company pays a Hong Kong company director, the salary paid by the Hong Kong company is based on the director's Hong Kong income which is subject to salaries tax. Therefore, the director must complete the salaries tax form and pay tax.

Sources of corporate salaries tax in Hong Kong

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