Hong Kong Income Tax

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hong-kongThe Financial Secretary for Hong Kong John C Tsang has proposed reducing taxes on profits, salaries, and any tax under personal assessment for 2013-14 by 75% as a one off discount. Should all the relevant legislation come in line he is hoping to put his proposal into effect in this year’s tax bill. The Inland Revenue Department (IRD) has issued around 190,000 profits tax returns, 130,000 property tax returns and 290,000 employer’s returns for the year of assessment 2013-14. It is estimated that 2.37 million tax returns for individuals will be issued on May 2.
Using eTAX to pay Hong Kong Income Tax
In Hong Kong tax payers are encouraged to use eTAX which is an easy -to-use service provided by the governmental department. Тax payers should logon to eTAX using their Taxpayer Identification Number (TIN) which they are able to locate from their tax return or tax demand note, the password needed to logon can be found with their digital certificate which should be issued by a recognised certification authority. If the tax payer has not registered or in the case they have forgotten their password they should follow this link to the government website www.gov.hk/etax where they can apply for a new one. Hong Kong is considered as a low tax area with a territorial taxation system. The income tax is 16.5% very similar to that of Singapore which is also considered as a low tax jurisdiction with an income tax rate of 17%, both jurisdictions have signed Double Taxation Treaties with many countries, and both have in place a territorial principle meaning that in certain cases income earned from outside the jurisdiction is not liable to be taxed. If you would like some more information on Hong Kong income tax or other taxes such as corporate, withholding, capital gains, dividends and double taxation or if you are thinking about Hong Kong as a jurisdiction and would like to compare it to Singapore taxation please follow the below links: Hong Kong Income Tax Singapore Taxation