Salaries tax

Events that trigger tax are when the vesting period ends or when the employee leaves Hong Kong.

[3] However, those individuals who visit Hong Kong for periods not exceeding 60 days will be exempt from paying Salaries Tax.

[4][5] Employment sourced in Hong Kong will be fully chargeable to Salaries Tax whereas offshore employment will be chargeable on a "time-in-time-out" basis, the taxable income of which will be apportioned by reference to the days present in Hong Kong.

If the employee does not receive a return, he is required to send the department a notification of chargeability by 31 July following the year of assessment.

Liability for salaries tax arises from two separate sources:[9] Under Commissioner of Inland Revenue v George Andrew Goepfert,[11] the following factors must be taken into account to determine where the source of income arises for an employment (whether inside or outside the territory): Employment income is deemed to include the following:[12] Salaries tax is chargeable on the lower of: Deductions include expenses necessary for earning such income (such as professional membership dues for one association), expenses for self-education (subject to a ceiling of $80,000), charitable donations (subject to minimum and maximum limits), contributions to the Mandatory Provident Fund or other occupational retirement schemes, home loan interest (subject to a lifetime limit of 15 years) and elderly residential care expenses (subject to a ceiling of $76,000).