Reply #14 TonyToro's post
Regarding the Residency question:-
Everyone who lives in Hong Kong must register for a Hong Kong ID - regardless of their level of entitlement to residency or not.
Permanent Residency is something Hong Kong Citizens have, plus those who have lived in HK (with a clean record) for 7 years may apply for Permanent Residency. Of course, someone with Permanent Residency will have a different class of HKID, but it's still a HKID.
China Travel pass depends on criteria set by the Chinese Govt, not by HKSAR Govt, which means different rules apply. To a layman it looks like it was created by the Chinese Govt to make it attractive for people who have Chinese ancestry to reveal their ethnicity and subject themselves to a degree of Chinese Govt authority and regulation.
Certainly makes it easier to go in and out of China if you have one ... BUT ...
... I have to wonder if you enter China with a China Travel Pass, you may have different rights inside China, compared to someone who enters with a US Passportand a visa. It would be harder (but I guess still possible) for the US consulate to claim jurisdiction over you if you've declared yourself as an "Overseas Chinese" by presenting a China-issued travel document at the border. If you did not apply for and use a foreigners' Entry Visa to enter, they can legitimately treat you as a local - with all the downsides that means.
Regarding the Tax question:-
Hong Kong tax has nothing whatsoever to do with Hong Kong residency.
If you earn in Hong Kong, you must pay tax in Hong Kong regardless of whether you are resident or not. Conversely (the good news) if your income is sourced outside of Hong Kong you are NOT required to pay Hong Kong tax on that part of your income, even if you were living in Hong Kong at the time.
This means tax planning can get interesting if (for example) you're managing different offices around the Asia - or if you do consulting jobs that take you outside Hong Kong - you can set aside part of your income as being exempt from HK tax ... of course that's not necessarily a smart thing to do, because it might mean you create the obligation to file and pay taxes in the other country. But if you really look into it there are loopholes you can benefit from if you do the homework in advance, and keep excellent records ...
For US citizens they have to pay tax to US at US rates even they pay HK tax ... poor dears ...
... so it's hardly surprising that the waiting list at the US Embassy to surrender US citizenship is several months long 
[ Last edited by DArtagnan at 27-5-2011 15:59 ] | |
