HK Taxes
03-01-2008, 12:06 PM
#12
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Joined APC: Nov 2005
Position: 757 Capt
Posts: 2,418
If you are looking at your potential taxes via TT, not sure if they will reflect what you would actually pay w/out the fun filled tax equalization plan FedEx signed up for.
A few years back our govt changed the foreign tax rules, used to be you took the exclusion off the top and paid taxes on that amount.....but, that meant people were moving out of the upper tax brackets and into the lower ones. And since the govt hates to "lose" that money, they changed the rules. So, in a way, they tax you from the top down. If you are at the 140k level, you will be taxed at the % a 140k person would be in the states.
E.G in 2008 the marginal tax rates are
25% on 32k to 78k (rounded down)
28% on 79k to 164k
33% on 165k to 357k
So, old days you would take a 80ish off the top of your income and be taxed accordingly, for the 140k earner, you would be taxed as if you had only earned 60k or 25%. Now you get taxed at the 28% for the earnings above the exclusion
http://www.plantemoran.com/Services/...en+in+2006.htm
A few years back our govt changed the foreign tax rules, used to be you took the exclusion off the top and paid taxes on that amount.....but, that meant people were moving out of the upper tax brackets and into the lower ones. And since the govt hates to "lose" that money, they changed the rules. So, in a way, they tax you from the top down. If you are at the 140k level, you will be taxed at the % a 140k person would be in the states.
E.G in 2008 the marginal tax rates are
25% on 32k to 78k (rounded down)
28% on 79k to 164k
33% on 165k to 357k
So, old days you would take a 80ish off the top of your income and be taxed accordingly, for the 140k earner, you would be taxed as if you had only earned 60k or 25%. Now you get taxed at the 28% for the earnings above the exclusion
http://www.plantemoran.com/Services/...en+in+2006.htm
03-01-2008, 12:10 PM
#13
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Joined APC: Nov 2005
Position: 757 Capt
Posts: 2,418
Should add that your true tax rate will be lower. Govt doesn't actually take a straight percentage of the earnings, but rather an increasing percentage as your earnings climb up into the next level.
That's why TT will give you your true tax rate versus the marginal tax rate
That's why TT will give you your true tax rate versus the marginal tax rate
03-01-2008, 07:11 PM
#14
Gets Weekends Off
Joined APC: Sep 2006
Posts: 1,336
Please don't tell me
Originally Posted by FlynLow
Question for the tax experts...
1. If you move to HK, you get the expat tax break, correct? Understand this to mean that you are exempt from the first 80k or so of taxes?
2. You pay Honk Kong taxes, of up to 15%
So do you really get a tax break
If you make 220k, married, one kid no other deducts, the turbo tax tax rate is 44k
If you take off the 80 and get taxed on 140, the tax rate is 22k
15% of 220k is 33k.
So what does that really mean, is you would owe, 22k to feds and 33k to the commies, fedex would theoretically pay the difference between the 55k and the 44k?
Just trying to get a conceptual idea of the tax implication and whether or not you get a real tax break as an expat or not under the LOA?
1. If you move to HK, you get the expat tax break, correct? Understand this to mean that you are exempt from the first 80k or so of taxes?
2. You pay Honk Kong taxes, of up to 15%
So do you really get a tax break
If you make 220k, married, one kid no other deducts, the turbo tax tax rate is 44k
If you take off the 80 and get taxed on 140, the tax rate is 22k
15% of 220k is 33k.
So what does that really mean, is you would owe, 22k to feds and 33k to the commies, fedex would theoretically pay the difference between the 55k and the 44k?
Just trying to get a conceptual idea of the tax implication and whether or not you get a real tax break as an expat or not under the LOA?
No wonder we got this POA shoved UOA.
03-02-2008, 07:13 AM
#16
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Joined APC: Jul 2007
Position: 767 Trunk Monkey
Posts: 562
Those hits just keep on coming!
Flew with my 2nd Captain recently that thought invol STV had "gone away." Another thought the 3-month voluntary STV would go "very senior." Had to explain it's NOT like SIBA; yea--enjoy those days off overseas with no pay for 3 months! Thank you very little.
03-02-2008, 08:26 AM
#17
Gets Weekends Off
Joined APC: Aug 2006
Posts: 3,931
Originally Posted by Dadof6
Flew with my 2nd Captain recently that thought invol STV had "gone away." :
03-02-2008, 01:02 PM
#18
Gets Weekends Off
Joined APC: Jul 2006
Position: 777 CAP
Posts: 494
Originally Posted by FlynLow
Question for the tax experts...
1. If you move to HK, you get the expat tax break, correct? Understand this to mean that you are exempt from the first 80k or so of taxes?
2. You pay Honk Kong taxes, of up to 15%
So do you really get a tax break
If you make 220k, married, one kid no other deducts, the turbo tax tax rate is 44k
If you take off the 80 and get taxed on 140, the tax rate is 22k
15% of 220k is 33k.
So what does that really mean, is you would owe, 22k to feds and 33k to the commies, fedex would theoretically pay the difference between the 55k and the 44k?
Just trying to get a conceptual idea of the tax implication and whether or not you get a real tax break as an expat or not under the LOA?
1. If you move to HK, you get the expat tax break, correct? Understand this to mean that you are exempt from the first 80k or so of taxes?
2. You pay Honk Kong taxes, of up to 15%
So do you really get a tax break
If you make 220k, married, one kid no other deducts, the turbo tax tax rate is 44k
If you take off the 80 and get taxed on 140, the tax rate is 22k
15% of 220k is 33k.
So what does that really mean, is you would owe, 22k to feds and 33k to the commies, fedex would theoretically pay the difference between the 55k and the 44k?
Just trying to get a conceptual idea of the tax implication and whether or not you get a real tax break as an expat or not under the LOA?
03-02-2008, 03:49 PM
#19
Gets Weekends Off
Joined APC: Nov 2005
Position: 757 Capt
Posts: 2,418
Originally Posted by Dadof6
Flew with my 2nd Captain recently that thought invol STV had "gone away." Another thought the 3-month voluntary STV would go "very senior." Had to explain it's NOT like SIBA; yea--enjoy those days off overseas with no pay for 3 months! Thank you very little.
03-03-2008, 07:36 AM
#20
Gets Weekends Off
Joined APC: Jul 2007
Position: 767 Trunk Monkey
Posts: 562
Originally Posted by kronan
Why did you explain it's not like SIBA, now it might not go senior, well, more than once
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