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Taxation
[Duty
to Pay Tax] [Tax
Rate] [Arrangement between
the Mainland of China and the HKSAR for
Avoidance of Double Taxation ]
Duty
to Pay Tax [ back to
top ]
Income derived from work in the Mainland
is subject to personal income tax. Pursuant
to Article 1 of the People's Republic
of China Personal Income Tax Law :
For individuals having fixed abodes in
the PRC, or having no fixed abodes but
having stayed for one full year, their
incomes obtained both in the PRC and outside
the PRC shall be subject to personal income
tax pursuant to the law.
For individuals not having fixed abode
in the PRC and have not been staying for
one full year in the PRC, their incomes
obtained in the PRC shall be subject to
personal income tax pursuant to the law.
(The above information is supplied by
the Office of the Government of the Hong
Kong Special Administrative Region in
Beijing.)
Tax
Rate [ back to top
]
The marginal tax rates of Personal Income
Tax range from 5% to 45%. For mainland
residents, Net Chargeable Income, i.e.
monthly income after $2000 allowance
deduction, is charged at progression rates
according to the table below. For Oversea
employees, Net Chargeable Income equals
to monthly income after deduction of $4800
allowance.
|
Level
|
Net Chargeable
Income
|
Tax rate
|
|
1
|
part which does
not exceed $500
|
5%
|
|
2
|
part which exceeds
$500-$2,000
|
10%
|
|
3
|
part which exceeds
$2,000-$5,000
|
15%
|
|
4
|
part which exceeds
$5,000-$20,000
|
20%
|
|
5
|
part which exceeds
$20,000-$40,000
|
25%
|
|
6
|
part which exceeds
$40,000-$60,000
|
30%
|
|
7
|
part which exceeds
$60,000-$80,000
|
35%
|
|
8
|
part which exceeds
$80,000-$100,000
|
40%
|
|
9
|
part which exceeds
$100,000
|
45%
|
Arrangement
between the Mainland of China and the
HKSAR for Avoidance of Double Taxation
[ back to top ]
Income earned in the Mainland by Hong
Kong people may be subject to Personal
Income Tax of the Mainland as well as
Salaries Tax of Hong Kong. To avoid double
taxation to same income, an arrangement
has been reached between the Mainland
and the HKSAR. Please click the below
hyperlink of the Hong Kong Inland Revenue
Department for perusal of the arrangement:
http://www.ird.gov.hk/eng/paf/pam.htm#dt
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