โ Common Misconception: Remote โ Tax-Free
Many remote workers assume working for an overseas company means zero HK tax. Wrong. If your services are physically performed in Hong Kong, the income is HK-sourced and fully taxable under salaries tax โ regardless of where your employer is based.
Common Challenges
Source of Income Confusion
Is your overseas-employer salary HK-sourced? The answer depends on WHERE you perform your work, not where your employer sits.
โ Risk: Wrong classification โ underpaid tax + penalties
WFH Expense Deductions
Home office costs, internet, equipment โ what can you legitimately deduct from your assessable income under the IRO?
โ Risk: Missing deductions โ overpaying tax
Business Travel Splits
Working partly in HK, partly overseas? The day-count apportionment under s.8(1A)(b) can significantly reduce your tax bill.
โ Risk: No apportionment claim โ 100% taxed in HK
Employer Reporting Obligations
Your overseas employer may still need to file IR56B/IR56E with IRD if you are tax-resident in HK.
โ Risk: Non-compliance โ IRD enquiry and back-tax demand
Who Is This For?
HK residents working for overseas companies
Employed by a US, UK, Singapore or mainland China company while physically based in HK.
Hybrid workers (HK + abroad)
Split time between HK office and home or overseas locations throughout the tax year.
Freelancers with foreign clients
Providing services remotely to overseas clients from your HK home or co-working space.
Digital nomads newly arrived in HK
Establishing tax residency and understanding first-year salaries tax obligations.
Employees on global mobility assignments
Seconded to HK but payrolled abroad, navigating split employer arrangements.
What We Do
Source of Income Analysis
We determine what portion of your income is HK-sourced under the IRD's DIPN 10 guidelines.
Using s.8(1A)(b) time-apportionment or s.8(1A)(c) exemption analysis
WFH Expense Claims
Identify and document all allowable deductions under s.12(1)(a) of the Inland Revenue Ordinance.
Internet, equipment depreciation, proportion of utilities
Travel Day Apportionment
Calculate your HK-exempt portion if you work both in HK and overseas throughout the year.
Day-count certificates and employer confirmation letters
Salaries Tax Return Filing
Complete and file your BIR60 return accurately with all legitimate deductions claimed.
Including provisional tax objection management where appropriate
IRD Correspondence Handling
We respond to IRD enquiries and assessments on your behalf with professional written submissions.
Including DIPN-referenced position papers
How It Works
Free 30-Minute Consultation
30 minsExplain your work arrangement. We determine your tax exposure and eligibility for exemptions.
Employment & Travel Document Review
1 dayWe review your contract, payslips, travel records, and any overseas employer documents.
Tax Position Paper
2โ3 daysWe prepare a written position clarifying your source of income and claiming all legitimate deductions.
IRD Filing & Correspondence
As requiredWe file your BIR60 and handle any follow-up IRD queries through to final assessment.
Case Studies
Software Engineer โ UK company, HK-based
- โขAnnual salary HKD 620,000
- โขWorked 100% from HK home office
- โขClaimed internet and equipment deductions
- โขCorrectly identified as fully HK-sourced
โTAX.hk clarified my situation immediately and saved me from a costly misreporting error.โ
Marketing Manager โ HK + Singapore split role
- โขAnnual salary HKD 900,000
- โข60% HK / 40% Singapore work split
- โขDay-count apportionment applied
- โขHKD 360,000 income exempt from HK salaries tax
โThe day-count apportionment strategy was something I had no idea existed.โ
Frequently Asked Questions
I work for a US company from my HK home. Do I pay HK salaries tax?
Yes. Because your services are physically performed in Hong Kong, your salary is HK-sourced under s.8(1)(a) of the IRO. The fact your employer is American is irrelevant. You will be subject to HK salaries tax at progressive rates or the standard rate of 15%, whichever is lower.
Can I deduct my home office expenses?
Partially. Under s.12(1)(a) IRO, expenses must be "wholly, exclusively and necessarily" incurred in earning your income. A proportion of internet costs and equipment depreciation may qualify; pure residential rental costs generally do not. We help identify the legitimate deductible portion.
I work 3 days in HK, 2 days in Singapore. Can I reduce my HK tax?
Yes. Under s.8(1A)(b), income attributable to services rendered outside HK is exempt. We calculate a day-count apportionment to exclude your Singapore-working days from HK assessable income, which can produce significant savings.
My overseas employer does not know about HK tax obligations. Is that a problem?
It can be. Overseas employers with HK-resident employees may need to file employer returns (IR56B) with the IRD, and you remain personally responsible for your own salaries tax. We advise both employees and employers on their respective obligations.
What if I have not filed my tax return for previous years?
File as soon as possible. Voluntary disclosure typically results in much lighter penalties than IRD-initiated enforcement. We handle back-year returns and negotiate penalty reductions where applicable.
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