Taxation of international executives
Are there social security/social insurance taxes in Hong Kong (SAR)? If so, what are the rates for employers and employees?
There are no social security/social insurance taxes in Hong Kong (SAR).
Employers are required to make arrangements for all employees aged between 18 and 65 normally residing and working in Hong Kong (SAR) to join a mandatory provident fund (MPF) scheme. However, exemption from the MPF requirements is available to any person entering Hong Kong (SAR) for the purpose of being employed or self-employed (i.e. on a valid employment visa) for a limited period (13 months or less) or who is a member of an overseas retirement scheme.
Relevant Income - includes wages, salary, leave pay, fee, commissions, bonuses, gratuity, perquisites, or allowances expressed in monetary terms, paid or payable by an employer (directly or indirectly) to the employee, but does not include severance payment or long service payments under the Employment Ordinance.
|Paid by employer||Paid by employee
|Mandatory Provident Fund||5% of relevant income, maximum contribution of HKD1,500 a month||5% of relevant income, maximum contribution of HKD1,500 a month||10% of relevant income, maximum contribution of HKD3,000 a month|
Are there any gift, wealth, estate, and/or inheritance taxes in Hong Kong (SAR)?
None. Estate duty was abolished with effect from February 2006.
Are there real estate taxes in Hong Kong (SAR)?
Yes. Rental income from land and buildings located in Hong Kong (SAR) is subject to property tax. Government rent and rates are payable on properties throughout the jurisdiction.
Are there sales and/or value-added taxes in Hong Kong (SAR)?
Are there unemployment taxes in Hong Kong (SAR)?
Are there additional taxes in Hong Kong (SAR) that may be relevant to the general assignee? For example, customs tax, excise tax, stamp tax, and so on.
Is there a requirement to declare/report offshore assets (e.g. foreign financial accounts, securities) to the country/jurisdiction’s fiscal or banking authorities?
There is no requirement to report foreign financial assets to either the Hong Kong (SAR) fiscal or banking authorities.
However, Hong Kong (SAR) has signed up to automatic exchange of information under the Common Reporting Standard - the standard for all automatic exchange of financial information.
Financial institutions in Hong Kong (SAR) are required to identify and report to the Inland Revenue Department the financial accounts held be tax residents of overseas reportable jurisdictions on an annual basis. The Inland Revenue Department will pass this information to the relevant overseas jurisdictions. Reporting has commenced from 2018 with respect to 2017 account information. Foreign financial assets captured by overseas tax authorities, who have also signed up the above network of automatic exchange, will also be exchanged with the Inland Revenue Department. The information exchanged will depend on the specifics of the relevant agreement.
A global survey of income tax, social security tax rates and tax legislation impacting expatriate employees.
All information contained in this publication is summarized by KPMG Tax Services Limited, a Hong Kong (SAR) limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity, based on the Inland Revenue Ordinance, the website of the Inland Revenue Department, the website of the Mandatory Provident Fund Schemes Authority and the website of the Immigration Department.
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KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.