如何计算香港带薪年假?

香港带薪年假是薪酬的一部分

香港带薪年假是薪酬的一部分。一年有 365 天。除了周末休息外,员工还有年假。那么,雇主应该注意些什么呢?

如何计算带薪年假?

哪些人可以享受带薪假期?

根据《雇佣条例》,按连续性合同受雇满 12 个月的雇员有权享受带薪年假。雇员可享有的带薪年假根据其服务年限由 7 天逐步增加至最多 14 天。

雇主可否以薪代假?

根据《雇佣条例》,无论雇员是否有权享有假期薪酬,雇主都应给予雇员法定假期,或安排 “替代假期 “或 “代替假期”。雇主不得向雇员支付任何形式的款项以代替给予假期。换言之,不允许 “买断 “假期。不过,超过 10 天假期的部分,雇员可以选择接受支付作为替代。

例如:有权享受 12 天香港带薪年假的雇员可以选择只休 10 天带薪年假,并接受雇主支付的 2 天年假补偿。

香港带薪年假折算成工资该如何计算?

年假工资的日工资额相当于雇员在 12 个月期间的日平均工资。

现任员工

就业
12个月以上前12个月平均日工资 x 年假数
不足12个月就业期间平均日工资 x 年假数

例如:Ada 在公司工作了一年多。她的工资总额为 200,000 港元(包括工资和佣金等)。总工作日为 240 天。如果艾米休 7 天年假。计算方法是

HK$200,000 / 240 x 7 = HK$5,833.33

终止雇佣合同

工作期限年假权利
少于3个月0
3-12个月工作天数/365 x 本休假年度应享年假
12 个月,在当前休假年不足 3 个月尚未休年假
12 个月,在当前休假年 3-12 个月工作日/365 x 年假数 + 未休年假

如果雇主不允许雇员休年假,会有什么后果?

不允许员工休年假的雇主将被起诉。一经定罪,可处以$50,000的罚款。

想要了解更多信息,请联系我们

HOW TO CALCULATE PAID ANNUAL LEAVE?

Paid Annual Leave is part of the compensation

Everyone knows there are 365 days in a year. Besides the weekend off, an employee does have annual leave. Also, paid annual leave is part of the compensation. Then what should an employer be aware of?

HOW TO CALCULATE PAID ANNUAL LEAVE?

Who can entitle a Paid-Leave?

According to the Employment Ordinance, employees who have been employed under a continuous contract for 12 months are entitled to annual leave with pay. An employee’s entitlement to paid annual leave increases progressively from seven days to a maximum of 14 days according to his length of service.

Can an employer pay in lieu of Leave?

According to the Employment Ordinance, regardless of whether an employee is entitled to holiday pay, an employer should grant his employee a statutory holiday, or arrange an “alternative holiday” or “substituted holiday”. An employer must not make any form of payment to the employee in lieu of granting a holiday. In other words, “buy-out” of a holiday is not allowed. However, an employee may choose to accept payment in lieu of the part of his leave entitlement which exceeds 10 days.

For example: An employee who is entitled to 12 days of paid annual leave may choose to take only 10 days of paid annual leave and accept payment from the employer in lieu of 2 days of annual leave.

How to calculate if paid annual leave is converted into the payment?

The daily rate of annual leave pay is a sum equivalent to the average daily wages earned by an employee in the 12-month period.

Current staff

Employment 
More than 12 monthsPrevious 12 months average daily wage X no. of annual leave
Less than 12 monthsEmployment period average daily wage x no. of annual leave

For example: Ada worked for your company more than a year. And her total salary is HK$200,000 (Included salary and commission etc). Total work days are 240. If Amy takes 7 days annual leave. The calculation is

HK$200,000 / 240 x 7 = HK$5,833.33

Termination of Employment Contract

Period of EmploymentAnnual Leave Entitlements
Less than 3 months0
3-12 monthsWork days/365 x Entitled Annual Leave in the current leave year
12 months, less than 3 months in the current leave yearAnnual leave not yet taken
12 months, 3-12 months in the current leave yearWork days/365 x No. of Annual leave + Annual leave not yet taken

What is the consequence if an employer denies an employee to take annual leave?

An employer who does not allow employees to take annual leave is liable to prosecution. And, upon conviction, to a fine of $50,000.

For further information, please contact us.

You may want to read: MATERNITY LEAVE REIMBURSEMENT SCHEME IN HONG KONG

HONG KONG LIMITED OFFSHORE TAX EXEMPTION CLAIM

The territorial principle is the fundamental to the taxation of profit tax in Hong Kong. Thus, the profits which arise in or are derived from Hong Kong are liable to profits tax. Otherwise, you can claim of tax exemption on the ground of “Income not sourced in Hong Kong”. That is, may be treated as offshore sourced and non-taxable in Hong Kong.

HK LIMITED APPLY FOR OFFSHOE TAX EXEMPTION CLAIM

Does your company’s income liable to income tax in Hong Kong?

The profits derived by Hong Kong Limited Company may be treated as offshore sourced income and thus exempted from Hong Kong taxation. Here are some examples of various business incomes prepared by Inland Revenue Department (IRD):

Trading Profits

A Hong Kong company negotiates and concludes the terms of the purchase and sale contracts with suppliers and customers outside Hong Kong. And also carries out the relevant operations outside Hong Kong. Then it may be possible to claim that the trading profits so derived are non-taxable in Hong Kong.

Manufacturing Profits

A Hong Kong manufacturing business enters into a contract processing or assembly arrangement with a Mainland entity. And to entity located elsewhere where the arrangement is similar to the one with the Mainland entity. Moreover, the Hong Kong manufacturing business will provide the raw materials, technical know-how, management, training and supervision for the locally recruited labour and so on. Then it may be possible to claim that 50% of the manufacturing profits are not taxable in Hong Kong.

Service Profits

A Hong Kong company provides services partly in Hong Kong and partly outside Hong Kong. It may be possible to claim that part of the service income is attributable to the services rendered outside Hong Kong and therefore not taxable.

Furthermore, if a Hong Kong company appoints overseas agent or service provider to perform services on its behalf outside Hong Kong. It may be possible to claim that the entire service income relating to the services rendered outside Hong Kong is not taxable.

Can you get a green light from IRD?

IRD will examines each case of offshore-sourced income tax exemption claim. So, the samples above we have emphasized the word “possible”. IRD adopts operation test in the matter of facto to determine where the major business profit-making operation take place. That is, the source of profit. Usually, offshore-sourced income must at least fulfill all the following conditions:

  • Sufficient Proof of profits not derived from Hong Kong.
  • No business activities which produced the relevant profits held in Hong Kong
  • No office (no physical office of daily business operation and decision making) in Hong Kong.
  • The director(s) stay less than 60 days in Hong Kong during the financial year.

For further information, please contact us.

You may want to read: How to proof my income is offshore-sourced?

HOW TO PAY TAX IN HONG KONG?

Tax Payable

You may have heard Provisional Tax during the tax filing process but didn’t know much about it. After the tax assessment, the taxpayer needs to pay two instalments. Sometimes it is only when the tax is paid that it is discovered that the tax is more than the original tax payable. In fact, it is a provisional tax payment.

HOW TO PAY TAX IN HONG KONG?

What is Provisional Tax?

According to the information of the Inland Revenue Department, Provisional Tax is a government requirement. The tax amount is calculated based on the taxpayer’s income in the previous tax year. And then calculated for 12 months and requires prepayment for the next tax. Part of the tax in the tax year.

When assessing the tax in the coming year, the tax will be deducted from the provisional tax of the current year. If there is still a balance, the provisional tax of that year will be used and offset in the next year of assessment.

Since the first-time tax payer does not have the provisional tax deduction for the previous year. So, you may have to bear the provisional tax for the next tax year.

How to settle a tax bill in Hong Kong?

Inland Revenue Department (IRD) will send you a payment vouchers by letter. Or send you an e-alert if you have registered a e-tax account. Then you can settle the bill either in person or electronic payment.

In Person

Post Offices

You can present the payment voucher and pay your IRD bills or purchase Tax Reserve Certificates at Post Offices by cash, cheque or EPS.

Convenience Stores

You can print the payment voucher barcode, then you can present the voucher and pay tax. For example, at any 7-Eleven Convenience Store, Circle K Convenience Store, VanGO Convenience Store and U select in Hong Kong.

By Post

You can send a crossed cheque to the commissioner of Inland Revenue. And make payable to “The Government of the Hong Kong Special Administrative Region”. Then write the reference number on the back of the cheque.

Electronic Payment

Tax payment accepts all kind of electronic means. You can pay your tax by telephone, Internet or bank Automated Teller Machine (ATM). 

Last but not the least, Hong Kong have so many simple and easy way to pay tax. And paying tax should be paid on or before the due date. If you denied to pay, IRD will take immediate action.

For further information, please contact us.

You may want to read: Tax Paying Form BIR51/BIR52: Using the same envelope to send correspondence for enquiries/claims and the tax return

https://centreo.hk/tax-paying-form-bir51-bir52-using-the-same-envelope-to-send-correspondence-for-enquiries-claims-and-the-tax-return/

HONG KONG TAX RESIDENTS GUIDE

Hong Kong has a reputation of tax-friendly for decades. As Hong Kong is a Free Trade Port. Tax is low, simple and competitive for tax residents in Hong Kong. If you are going to start a new career or business in Hong Kong, here’s a little tax guide for you.

HONG KONG TAX GUIDE FOR RESIDENTS

Direct Tax

Hong Kong only imposes 3-type of direct taxes. That is, Profit Tax, Salaries Tax and Property Tax. In the past few years, Government offers generous allowance and deduction to lower your taxable amount.

2023/24: Hong Kong Tax Residents Salaries tax rate

Here are the salaries tax rates for the period from 1 April 2023 to 31 March 2024:

 Net Chargeable IncomeRate
Taxable Income Band$1-$50,0002%
Taxable Income Band$50,000-$100,0006%
Taxable Income Band$100,001-$150,00010%
Taxable Income Band$150,001-$200,00014%
Taxable Income Band$200,000+17%
Calculation of Tax Payable

Do you need to pay Salaries Tax?

Hong Kong observes a territorial basis of taxation; therefore, the concept of tax residents has no significance in determining tax liability, except in limited circumstances.

Your income will be chargeable as below:

  • If your income is generated from Hong Kong, including arising in or derived from Hong Kong employment, office and pension.
  • Your income from services rendered in Hong Kong during visits of more than 60 days in a tax year.

What kinds of income is taxable?

Employment income

An employee is subject to salaries tax if their employment income is sourced in Hong Kong. Even if you are not usually resident in the territory. Thus, cash emoluments including bonuses and gratuities are taxable income. However, benefits are non-taxable. Unless they are converted into cash. Or specifically relate to holiday travel or the education of a child. Moreover, the provision of accommodation by an employer creates a taxable benefit equal to an amount ranging from 4%-10% of the employee’s other taxable income, depending on the type of accommodation.

Self-employment and business income

Anyone carrying on a profession, trade or business in Hong Kong is subject

to profits tax on income arising in or derived from Hong Kong from that

profession, trade or business.

Directors’ fees

Directors fees derived from a company that has its central management and control in Hong Kong are subject to salaries tax in Hong Kong. Otherwise, directors’ fees are not taxable.

Employer-provided stock options

Employer-provided stock options are generally taxable at the time of exercise. However, for an individual who has non-Hong Kong employment and is taxed on a pro rata basis by reference to the number of days of his or her services in Hong Kong only. That is, part or all of the option gain may be excluded from taxable income. The amount excluded depends on various factors including whether the option is granted conditionally or unconditionally. And, if granted conditionally, the number of days on which the individual performed Hong Kong services during the vesting period.

Taxation of employment-related share awards

Employment-related share awards are generally considered to be perquisites from employment and taxed as part of the remuneration. In general, they become taxable when an employee is entitled to the full economic benefit of the shares awarded. If the employee has a non-Hong Kong employment, proration of the income by reference to the number of days of their services in Hong Kong that is similar to the proration applicable to stock option benefits may also be allowed.

For further information, please contact us.

You may want to read: What to do when I receive a Profit Tax Return?

IS THERE CAPITAL GAIN TAX IN HONG KONG?

Simple Tax System

Hong Kong has a simple tax system with low tax rates for businesses and individuals. There is no Capital Gain tax and only have three types of taxes in Hong Kong: Profits tax, Salaries tax and Property tax.

IS THERE CAPITAL GAIN TAX IN HONG KONG?

Any other Taxes?

Capital Gain Tax

Hong Kong does not tax capital gains. However, gains on the disposal of assets may be subject to profits tax if the disposal constitutes a transaction in the nature of trade.

Consumption Taxes

Value-added, goods and services, and sales taxes do not apply in Hong Kong.

Estate Taxes

Started from Feb 2006, Hong Kong abolished the Estate Taxes.

Social Security Tax

Hong Kong does not impose any social security taxes. However, employers and employees need to contribute 5% of the salaries or HKD1,500 per month for the Mandatory Provident Fund (MPF) schemes. If the salary is under HKD7,100 per month, then the employee is not required to make contribution. But the employer still has to contribute 5% for the MPF.

Is there any taxes other than Capital Gain tax?

In short, Hong Kong does not have hidden tax, apart from the 3 major taxes, there are Stamp Duties, Custom Duties, Rates and Property tax.

Stamp Duties

Stamp duty imposes on stock transfer. By way of sale and purchase at 0.26% of the consideration per transaction.

Custom Duties

Customs duties are levied on limited categories of dutiable commodities . For examples: tobacco, liquor, methyl alcohol, and hydrocarbons etc. Regardless of whether they are imported or locally manufactured. As far as individuals are concerned, the sale prices includes the duties.

Rates

Rates are an indirect tax levied on properties in Hong Kong. It charged at 5% of the rateable value which is the estimated annual rental value of a property.

Property Tax

Property tax is charged to the owner of any land or buildings (except government and consular properties) in Hong Kong. Nonetheless, the standard rate of 15% on the net assessable value of such land or buildings. On the other hand, net assessable value of a property is the consideration payable to the owner for the right to use the land or buildings less rates paid by the owner and a 20% notional allowance. If the owner is self-using the property, then it is not subject to property tax. Indeed no rent is receivable with respect to that property.

Environmental Taxes

Hong Kong does not exactly have an environmental Taxes, but Plastic Shopping Bag (PSB) charging scheme. Except for plastic bags used for hygiene reasons. All plastic bags are subject to PSB charges. You have to pay $1 for each PSB.

For further information, please contact us.

You may want to read: CAN DONATIONS BE TAX DEDUCTIBLE IN HONG KONG?

HOW TRADEMARK PROTECTS YOUR BRAND?

Centre O knows you spent a lot of time and effort to create a brand. From your own original conception, design, production and to launch on the market. Then do you do anything to protect your brand? Yet, to ensure that the intellectual property rights of your product is under protection. The entrepreneurs can obtain legal protection through trademark law.

HOW TRADEMARK PROTECTS YOUR BRAND?

3-tip for Trademark Protection

Regional Trademark Protection

Depending on the scope of your business, you need to register and protect your trademark in your main areas of operation or target markets. For example, China, Hong Kong, Macau, Taiwan, the United States, the European Union and other regions. Then your registration helps prevent other businesses from using similar trademarks in your targeted area. And then your trademark is protecting your market share and brand image in your area.

Class Trademark Protection

Depending on the category of your product or service, you need to register and protect your trademark in the relevant class. For example: catering, food, Internet, beauty, medical, pharmaceutical and other product service protection. Then the registration will restrict other businesses from using similar trademarks in the same or similar categories. Also it is protecting the uniqueness and recognition of your brand.

Type Trademark Protection

To ensure that your company brand, or even your flagship product has the appropriate trademark protection. Then you have to think deep and consider your type, such as a word mark, an image mark or a color mark and so on. Since different types of protection have different legal requirements and procedures. So you have to choose the corresponding protection method according to the characteristics of your brand. For example, company logo, brand/sub-brand name, flagship product, unique brand logo, etc.

For further information, please contact us.

You may want to read: HOW TO APPLY FOR A TRADEMARK IN HONG KONG?

香港居民税务指南

几十年来,香港一直享有税收优惠的美誉。由于香港是自由贸易港,因此税制低廉、简单且具有竞争力。如果您准备在香港开始新的事业或创业,那么请收下这份税务指南。

香港居民税务指南

直接税

香港只征收三种直接税,即利得税、薪俸税和物业税。在过去几年中,政府提供了丰厚的免税额和扣除额,以降低您的应纳税额。

2023/24: 香港居民薪俸税税率

以下是 2023 年 4 月 1 日至 2024 年 3 月 31 日期间的薪俸税税率:

应计净收入利率
应税收入档次$1-$50,0002%
应税收入档次$50,000-$100,0006%
应税收入档次$100,001-$150,00010%
应税收入档次$150,001-$200,00014%
应税收入档次$200,000+17%
应纳税额的计算

您需要缴纳薪俸税吗?

香港实行属地征税制,因此,除少数情况外,税务居民身份的概念在确定纳税义务方面没有意义。

您的收入将按以下方式收取:

  • 如果您的收入来自香港,包括在香港就业、任职和领取退休金所产生的收入。
  • 您在一个纳税年度内超过 60 天的访港服务所得。

哪些收入需要纳税?

就业收入

如果雇员的就业收入来源于香港,则须缴纳薪俸税,即使您通常不在境内居住。因此,现金薪酬(包括奖金和酬金)属于应税收入。然而,福利则无需纳税。除非它们被兑换成现金,或具体涉及假日旅行或子女教育。此外,雇主提供住宿会产生应税福利,金额相当于雇员其他应税收入的 4%-10% 不等,视住宿类型而定。

个体经营和商业收入

任何在香港从事专业、行业或业务的人士,须就该专业、行业或业务在香港产生或得自香港的收入缴纳利得税。

董事酬金

中央管理和控制权在香港的公司收取的董事费用须在香港缴纳薪俸税。否则,董事酬金无需纳税。

雇主提供的股票期权

雇主提供的股票期权一般应在行使时纳税。但是,对于在非香港就业的个人来说,只需根据其在香港的服务天数按比例纳税。也就是说,部分或全部期权收益可从应纳税收入中扣除。免税额取决于多种因素,包括期权是有条件授予还是无条件授予。如果是有条件授予,则取决于个人在归属期内提供香港服务的天数。

与雇用有关的股份奖励的征税

与雇佣相关的股份奖励一般被视为雇佣津贴,并作为薪酬的一部分征税。一般来说,当雇员有权获得所奖励股份的全部经济利益时,这些奖励就应纳税。如果雇员在香港以外的地方工作,也可以根据其在香港的服务天数按比例分配收入,这与适用于股票期权利益的比例分配类似。

想要了解更多信息,请联系我们