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Non-HK employment - Time-in-time-out basis 2016-11-30

Since Hong Kong adopts the territoriality basis of taxation, when a taxpayer with non-Hong Kong employment (i.e. an expatriate) performs services during visits to Hong Kong which exceed a total of 60 days in a year of assessment, his or income would be exposed to Hong Kong salaries tax.

In the essence, only the portion of income which relates to services rendered by the taxpayer in Hong Kong is subject to Hong Kong salaries tax. If the income chargeable to salaries tax cannot be identified by reference to the services rendered, the Inland Revenue Department is usually by reference to the proportionate number of days spent in Hong Kong in the year of assessment to the total number of days in that year to tax the employment income of visitor. This is the so-called 'time-in-time-out' basis[i].


[i]In calculating the number of days for time apportionment purposes, either the day ofarrival or day of departure is included, but not both.