Hong Kong Airline Pilot & Crew Tax — Expert Advisory

Pilots who are HK residents pay salaries tax on their total employment income. However, they can claim a time-apportionment deduction for income attributable to time spent outside HK. The deduction is calculated as: (Non-HK days / Total days) × Total income. For pilots, non-HK days typically include days operating international routes outside HK airspace. The exact methodology — whether based on calendar days, flying hours, or another measure — should be agreed with the IRD. Many airlines have standing agreements with the IRD on the apportionment methodology.

Overseas layover allowances, per diems, and duty allowances paid for time spent on overseas duty are generally assessable as employment income, but the amount assessed depends on the time-apportionment calculation. If the pilot's HK-source income is 40% of total income (based on apportionment), then 40% of the overseas allowances are also assessable as HK income. However, some overseas allowances may be specifically excluded if they are genuine expense reimbursements (e.g., hotel costs billed directly to the airline).

Pilots should maintain: flight logs showing all flights flown (dates, origin, destination, flight times); roster/schedule records; record of positioning and deadheading flights; records of simulator training and ground duties (HK-based); and records of any leaves taken outside HK. Airlines typically maintain these records, but pilots should retain personal copies. The IRD may request flight log evidence to verify the time-apportionment calculation on audit.

Yes. Company-provided housing (whether a company-owned property or a leased property paid by the employer) is assessable as a benefit in kind. The assessable rental value is calculated as 10% of the pilot's assessable income after deducting the housing benefit itself (or the actual rent paid by the employer, if lower). This is reported on IR56B by the employer. Cash housing allowances paid as part of salary are fully assessable at face value.

If you are a HK-resident pilot (domiciled or ordinarily resident in HK), you are subject to HK salaries tax on all employment income regardless of where you perform the duties. The time-apportionment relief reduces the assessable amount. If you are based overseas and only transit through HK (not a HK resident), your HK salaries tax liability is limited to income attributable to duties performed in HK. In both cases, a BIR60 return must be filed and the income correctly apportioned.