Tax rate on salary of HKD600,000 a year

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Can anyone give me an idea of what the take home would be for a single person?

HK taxes

Sure, this is easy. You can run the numbers all you like on this tax calculator provided by the HK Inland Revenue Department.

FYI, this year the tax on 600K would be just 71,640, leaving you with HKD528,360, or 44,030/month. And that's with no deductions whatsoever, i.e. just the standard exclusion for a single taxpayer.

But bear in mind that your 'take home' pay here is the whole lot -- there's no income/salaries tax withheld from your pay in Hong Kong. You need to pay it straight up when your tax bill is sent to you, so you must save for it. You do get two installments to pay, with the first one comprising the bulk of your tax bill.

I find this to be an excellent arrangement: you control your own money, and you must face directly the amount the government is taking away from you. If only the USA and other western countries followed this model!

Mr Tall

Taxes & Acoomodation

Hi Mr Tall,

My husband has been approached by a company which required him to station in HK. I would like to find out followings:

1) Accomodation

Say if the company did not provide any accomodation but build in the amount into his salary, e.g. Total earning per month is HKD100,000 inclusive of apartment rental which it is not spell out in the employment contract, is this whole 100,000 is taxable income to us? Anyway we can deduct the house rental from the total remuneration package?

2) For house/apartment retal in HKG, what are the deposit payment we need to be prepared ? 1 or 2 months deposit? How about utilities? Do we need to pay deposit as well, and if yes, how many months of deposit normally the landlord would required?

3) The company is located at 1 Connaught Place, Central, Hong Kong. What kind of rent we are looking at if we would like to get a 2 or 3 bedroom apartment not too far from his work place? Any recommandation of which location?

Appreaciate your help, thanks!

Tax, living arrangements

Hi Probably;

I think you'll be able to get a portion of your cash income tax-free if it is used on rent. You'll need to keep rental receipts and stipulate this on your tax return, but it's pretty easy.

I'm not entirely sure what the current practice is on rental deposits -- I haven't rented in many a year. Other readers, what's are the current deposits required?

As for a place to live, you have many choices, as your office will be easy enough to get to from a wide variety of neighborhoods. As always, we suggest you rent a serviced apartment for a month or two while you look around. You might also fine our thread on places to live in HK of use.

Good luck!

Mr Tall