HK Income Tax

[hongkong05]

I'm new to HK so hope you can help. Just want to figure out how much I should save per month so that I'll have money when the time comes to pay tax.

If my salary is HKD45,000/month, rent is HKD17,000/month, how much tax will I have to pay per month?

I'm an expat from UK living in HK.

[KnowItAll]

http://www.ird.gov.hk/eng/ese/pa_com..._06/pacfrm.htm

[tsuiwah]

go here

http://www.ird.gov.hk/eng/ese/pa_com..._06/pacfrm.htm
(or here: http://www.ird.gov.hk/eng/ese/ind_stc.htm)

looks like you should save roughly HK$6500 per month of your salary for taxes.

[tx75070]

How do you factor in if your company pays for the housing? It is not a straight addition to your income is it?

[PDLM]

Correct. If the company simply gives you use of an apartment then it has a taxable value of 10% of your salary (regardless of the value of the property they give you). http://www.ird.gov.hk/eng/faq/ctr.htm#a15

[tx75070]

So lets say the salary is 1M annually (as an example), then taxable income is 1.1M?

Also, when I use the tool on the website it gives back two values. One is standard rate and the other is progressive rate. What is the difference? And which one is applicable?

[PDLM]

Yes to your first question (regardless of how much rent the company actually pays).

You pay the lower of the two values (progressive vs flat).