What Hong Kong could teach the world about taxes

[Randy W]

With April 18th just around the corner, and me working on my THIRD return for this year (one for my sister, one for her Estate, and now ours) . . .

 

The Estate is a NEW tax entity, filing taxes for the first (and last) time - but that's another topic . . .

 

What Hong Kong could teach the world about taxes

 

 

What a delight it was to receive my first pay notice in Hong Kong. The bank told me my employer had deposited into my account exactly what he said I would get and not just half that figure with the other half lost to tax, union dues, workers compensation, unemployment insurance, provincial medical, Canada pension and on and on and on.

 

 

“What about the taxes?” I asked and the boss replied, “Oh, we pay a year-end bonus to cover that. Make sure to pass it on to the taxman then or Immigration won’t allow you to come back in again if you step out.”

What a delight, right down to the low tax rate. And what a relief the tax form was – (1) Is this still your name? (2) Is this still your address? (3) Write down the income number your employer gave you. (4) Sign this form. (5) Mail it back to us.

 

. . .

 

Meanwhile, no place on this planet can be closer to this ideal revenue system than our very own Hong Kong. The government already holds title to all the land, its revenues are already heavily based on sales of land leases and lease modifications along with rates and stamp duties on land transactions.

 

. . .

 

 

But I recognise futility. To paraphrase those immortal poets, Phil and Don Everly,

When I want sense and all its charms,

All I have to do is dream, dream, dream.

 

 

[credzba]

As April 15 approaches, I can only dream, dream, dream ..

This year we could only take the standard deduction, but to come to that conclusion took 8-10 hours of work

My daughter, doing her taxes for the first time alone, called to ask me "Dad, if the IRS already has all this data, why am i filling out these forms and sending them in?"

 

I had no answer for her.

[dan1984]

Every year in the past, I too struggled 8-10 hours to complete my taxes.

 

In 2015, however, I got married to my lady here in China and started our company (in Hong Kong). I broke down and had to hire a tax professional. Being married to a non-US citizen and owning a foreign company, just so frustrating all the hoops that need to be be jumped through. $600+ spent on a tax professional all to confirm that I need to pay ZERO in taxes!

 

Am I ranting and complaining, yes, but, tis' a fresh wound and I'm jealous of places like Hong Kong and friends in European countries where completing one's yearly taxes are MUCH less complicated.

 

:ranting: