How Hongkongers working in mainland China can avoid global income tax
- As long as they do not have a home or a family there, a 30-day trip from the country every five years could be enough to avoid the extra levy
Hongkongers working in mainland China who face being taxed on their global earnings have been given a way of avoiding the extra duty – as long as they do not own a home or raise a family there.
According to the new guidelines, all it will take is a 30-day trip from the country every five years.
New laws, passed by the National People’s Congress Standing Committee (NPCSC) on August 31, were set to take effect from the beginning of next year.
Under them, Hong Kong residents will be regarded as “tax residents” in mainland China — and therefore required to pay tax there on any earnings elsewhere the world – if they have a home, or spend more than 183 days a year, on the mainland. Having a home means “living habitually in [mainland] China due to household registration, family, economic interests”, according to the proposed guidelines, which did not elaborate.
But Hongkongers can avoid paying the extra duty by leaving the country for more than 30 days every five years, according to the 48 implementation guidelines on the amended law released on Saturday, which have been put forward for public consultation until November 4. The option is not available to anyone who owns a home or raises a family there.