Hello, I am Alex. Followed by the last post, we are going to have a look with those questions about tax to pay when working in Guangdong-Hong Kong-Macao Greater Bay Area.
Common questions were asked:
Question 1: If I am a Hong Kong resident who works for a Hong Kong company in Guangdong-Hong Kong-Macao Greater Bay Area, do I have to pay a double tax to both Government of China and Government of Hong Kong?
Question 2: If I am a non-Hong Kong resident who works for a Hong Kong company in Guangdong-Hong Kong-Macao Greater Bay Area, do I have to pay a double tax to both Government of China and Government of Hong Kong?
For being more further to answer the questions, information about the new policy of personal income tax for whom working in Guangdong-Hong Kong-Macao Greater Bay Area provides at below:
- Immigration less than 24 hours is not counted as a day of stay
- The time limit for individuals who do not have a residence is adjusted from one year to 183 days.
- The domestic residence time without taxation of the income of the individual’s domestic income and overseas income is extended from “full five years of residence” to “six years of residence”
- Single departure 30-day rule. In the calculation of “residence for six years”, if there is one departure more than 30 days within 183 days of residence in China, the above-mentioned “six years of residence” is recounted.
- Simplify the discount program. The tax exemption for overseas income paid during the period of “staying for six years” in the non-residential personal residence will be changed from approval to filing to reduce the taxpayer’s compliance costs.
Now we head on to answer the above two questions:
Q 1: If I am a Hong Kong resident who works for a Hong Kong company in Guangdong-Hong Kong-Macao Greater Bay Area, do I have to pay a double tax to both Government of China and Government of Hong Kong?
A 1: Identified you with residence or without residence in Mainland China. If you were working less than 183 days in China, you should only pay personal income tax for wages and salaries within the territory of China, if it’s beyond 183 days than the personal tax for wages and salaries within or beyond the territory of China are all requested to pay.
Under this condition, in the calculation of “residence for six years”, if there is one departure more than 30 days within 183 days of residence in China, the above-mentioned “six years of residence” is recounted. If conditions are fulfilled than the exemption for personal income tax beyond the territory of China will be continued.
Q 2: If I am a non-Hong Kong resident who works for a Hong Kong company in Guangdong-Hong Kong-Macao Greater Bay Area, do I have to pay a double tax to both Government of China and Government of Hong Kong?
A 2: Identified you with residence or without residence in Mainland China. Family register (Also called Hukou system in Mainland China), family household, and conflict of interests between relationship is also used to identified you’ve got residence or not in mainland China. For instance, if you’ve got registered as a resident in Guangdong in the Hukou system than you are identified as “with residence” in Mainland China and you are going to pay worldwide tax by following the rule of tax in Mainland China.
In conclusion, we can sum up in two conditions:
1: Hong Kong resident that with residence in Mainland China should pay both taxes in Hong Kong and Mainland China with no exemptions.
2: Hong Kong resident that without residence in Mainland China will have an exemption on personal income tax of wages and salaries that beyond the territory of China by counting the staying time in Mainland China are less than 183 days. In this condition, personal income tax for wages and salaries than within the territory of China and Hong Kong are still requested to pay.