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Income from overseas employment that foreign tax has been paid and is eligible to apply for exemption from Hong Kong salaries tax

Employees hired in Hong Kong who need to perform their duties in other places, and their income has been paid foreign taxes, but they cannot be regarded as not providing services in Hong Kong at all, nor can they be exempted from salaries tax under the <60 days> visit rule. The employee can apply for a partial exemption of the paid foreign tax income from the calculation of the total salaries tax income, but the foreign income tax must be of the same nature as the Hong Kong salaries tax. It should be noted that starting from 2018/19, this exemption does not apply to any taxpayer’s region that has entered into a comprehensive double taxation avoidance agreement or arrangement with Hong Kong.

In addition to the above, if the employee is a Hong Kong resident and earns income from performing his duties in a foreign country, and the region has entered into an agreement or arrangement to avoid double taxation with Hong Kong, the income of the region has been paid locally, He can apply for the local tax paid to be credited against Hong Kong salaries tax. Please note that the above tariffs do not apply to employees who belong to the category of director positions.

The above information is for reference only. If in doubt, we welcome your tax inquiries

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