FAQs of Salaries Tax

Q: My spouse and I have two children, so can each of us apply for child allowance of one child?

A: One of the couple should apply for all child allowance. Generally speaking, it's more favorable for one of the couple who earns higher income to apply for child allowance. However, if one of the couple is assessed at standard tax rate, it's more favorable for the other to apply for child allowance.

Q: How is it determined whether the dependent's parents are usually living in Hong Kong?

A: In determining whether the dependent parents are usually living in Hong Kong, Inland Revenue Department will consider their social and economic relations in Hong Kong, the objective factors referable of which include:

• The number of days staying in Hong Kong
• Whether they have a fixed residence in Hong Kong
• Whether they have property to reside in foreign country
• Whether they have job or business activities in Hong Kong or foreign country
• Whether relative s are living in Hong Kong or in foreign country

Generally speaking, if dependent parents are living in foreign country for a long time, the number of days staying in Hong Kong is limited or only of home-visiting nature, then they will not be deemed to be always living in Hong Kong by Inland Revenue Department, even if they hold Hong Kong permanent resident ID cards.

Q: My parents age more than 60 and hold Hong Kong ID card, but have moved to mainland, then can I apply for dependent parent allowance?

A: If your dependent parents don't intend to live in Hong Kong, and only occasionally visit home located in Hong Kong, they will not be deemed to be always living in Hong Kong, which means you will not meet the application requirements. However, if your parents only once in a while live in mainland, they will be deemed to be always living in Hong Kong, and you can apply for dependent parents allowance.

Q: I pay living cost of $30,000 to my mother every year, and intend to apply for "dependent parent allowance", then in which section of the tax declaration form shall I fill in the amount of living cost?

A: Application for "dependent parent allowance" is subject to your parents' residence, ages and dependence.
If the dependent parent is always living in Hong Kong, aged 55 or above in this year, and was given not less than $12,000 for a whole year. Then he/she is entitled to apply for "dependent parent allowance", but need not to fill in the amount of the living cost paid in the year.

Q: Does foreign national employed in Hong Kong need to pay Salaries Tax on salary?

A: Foreign national needs to pay Salaries Tax on its salary received during the employment in Hong Kong, but the following conditions can exempt the foreign national from Salaries Tax:

• Consecutively or accumulatively staying in Hong Kong not more than 183 days during one tax period
• This remuneration is not paid by Hong Kong employer or its representative
• This remuneration is not borne by enterprise set up in Hong Kong by foreign employer