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Posted Tue, 03 May 2022 14:04:23 GMT by Eastern Chan
Hi, I had migrated to UK with BNO visa in August 2021 and continued my original contract with my employer in Hong Kong as remote staff. My salary is paid in Hong Kong with Hong Kong Dollar. For taxation year 2021-2022, I have to pay income tax in Hong Kong as I was there from April to July 2021. Should I have tax return to HMRC for the income after I moved to UK in period August 2021 to March 2022? Or the income from this taxation year is considered taxed in Hong Kong and exempted for UK tax return under UK-Hong Kong tax treaty? Moreover, if I go to have tax return in UK by Self-Assessment, should only the take-home pay be considered? Part of my salary is deducted for Mandatory Provident Fund (MPF), which is a compulsory pension contribution in Hong Kong eligible for tax exemption. Thank you very much.
Posted Thu, 05 May 2022 13:44:18 GMT by HMRC Admin 19

Please see the double taxation treaty between the UK and Hong Kong. Article 14 suggests this income would remain taxable in Hong Kong. However, if you are a UK resident for tax purposes for the 2021/22 year then you are required to declare your worldwide income on a Self Assessment form.  

Hong Kong: tax treaties

With regards to the MPF and if this qualifies for tax exemption, you would need to check if this is a qualified overseas pension by checking the recognised overseas pension schemes notification list:

Check the recognised overseas pension schemes notification list

Any further information on whether your pension scheme is a qualified one or not will need to be directed to our pension scheme services.  

Once the facts are established this will allow you to decide if the gross or net of pension contritbutions figure is declared as your taxable income. 

Thank you.
Posted Tue, 10 May 2022 22:26:32 GMT by smallfishba
Hi HMRC Admin I am filing my tax return and am in a similar situation. May I further clarify that when you say "Article 14 suggests this income would remain taxable in Hong Kong", you are referring to the income before Eastern moved to the UK (April to July 2021). On the other hand, should the income after he moved to the UK (Aug 2021 onward) be taxable in the UK because he is a UK tax-resident in year 21-22? Even though that income was earned by working remotely for his Hong Kong employer, he was physically present in the UK while producing his work so his work is still counted as "Duties performed in UK" and is considered as UK income. Is it correct? Thank you.
Posted Fri, 13 May 2022 15:46:39 GMT by HMRC Admin 20
Hi smallfishba,

If you are UK tax resident then you need to declare any foreign income to the UK.
Article 14 suggest this and may also be taxed in Hong Kong if any of the duties are carried out there, unless the income is paid through the UK subsidiary and through a UK payroll. 

Thank you.

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