HK workers may get China tax exemptions based on time spent outsideLocal | 26 Oct 2018 4:16 pm
A local deputy to the National People’s Congress, Tam Yiu-chung, says Hong Kong people may be exempted from new income tax laws in China if they spend enough time outside the mainland, RTHK reports.
Tam made the comments after meeting officials from the State Administration of Taxation in Beijing.
Under the new law, which will come into effect next year, Hongkongers who work on the mainland and stay there for more than 183 days a year will be required to pay tax on their earnings around the world. But a five-year grace period will be given.
Tam said he was told that under the proposed arrangement, each time Hongkongers stay outside the mainland for more than 30 consecutive days, the five-year period will be calculated afresh.
He said tax officials told him they are collecting views from the public over details of how the laws should be implemented, adding that mainland authorities will also likely negotiate with the SAR government to avoid double taxation.
Currently, Hongkongers who work on the mainland for more than six months have to pay taxes, but only on the income earned there.