Hong Kong Domestic Helper Employer Tax — Expert Advisory

Under personal assessment, a Hong Kong taxpayer who employs a domestic helper is entitled to deduct the actual wages paid to the helper from their total income, subject to an annual maximum. For 2024/25, the maximum deductible amount is HKD 100,000 per helper per year. This deduction is available under s.26B of the IRO for personal assessment elections. If you pay your helper HKD 5,000/month (HKD 60,000/year), you can deduct HKD 60,000 from your assessable income — saving up to HKD 9,000 in tax at the 15% rate.

Yes. Employers of domestic helpers (including foreign domestic helpers) must file IR56B employer returns annually, reporting the helper's wages paid during the year. The filing deadline is typically in April each year (aligned with the tax year end). Failure to file IR56B is a strict liability offence — the employer can be fined HKD 10,000 per late or missing return. Most employers of domestic helpers are unaware of this obligation.

Foreign domestic helpers (FDHs) on standard 2-year contracts in Hong Kong are generally not considered "ordinarily resident" in Hong Kong for salaries tax purposes, as their presence is tied to a specific contract rather than being a permanent arrangement. However, the IRD does consider FDHs to be resident for the period of their employment in HK. In practice, FDH wages are low enough (minimum wage currently HKD 4,870/month) that most FDHs have negligible or zero salaries tax after allowances. Employers should not over-withhold.

Yes. Employers must enrol their domestic helpers in an MPF scheme and make mandatory employer contributions of 5% of the helper's relevant income (capped at HKD 1,500/month). The employee contribution (5%, also capped at HKD 1,500/month) must be deducted from the helper's wages. FDHs are specifically included in the MPF system. Failure to enrol or contribute results in MPFA penalties and mandatory contribution arrears with surcharges.

Yes. Self-employed individuals who elect personal assessment can include the domestic helper deduction in their personal assessment claim, alongside their business profits. The deduction reduces the total assessable income under personal assessment, potentially yielding greater tax savings than the standard allowances against salaries tax alone. The domestic helper must be genuinely employed in a residential capacity, not in the business, for this deduction to apply.