Employee benefits: Opportunities and challenges arising from new tax deductions - Workshop 2019

Overview

Starting from the year of assessment 2019/20, individual taxpayers can claim deductions relative to premiums paid for a Voluntary Health Insurance Scheme (VHIS), qualifying deferred annuity premiums (QDAP), and tax deductible MPF voluntary contributions (TVC). The Hong Kong Inland Revenue Department also recently issued detailed guidance to explain the conditions for deduction of the premiums and contributions.

In the market, companies take the chance to review their employees' benefits programs and evaluate whether the said new tax deductible items can be incorporated. It is key for relevant stakeholders to fully understand the tax rules and impact on their employees' benefit programs in order to formulate competitive compensation packages.

Key topics covered:

• Overview on the new tax deductions
• Practical issues on eligibility of taxpayers, qualifying premiums/contributions, maximum allowable deduction, treatment of refund, etc.
• Numerical examples on salaries tax implications
• Common pitfalls in reporting employees’ benefits for tax purposes

Trainers profile:

Theresa Chan, Partner, PwC International Assignment Services (Hong Kong) Limited; Certified Tax Advisor; President (2010), Deputy Chair of Tax Committee (current) for CPA Australia Greater China Division

Simon Kam, Senior Manager, PwC International Assignment Services (Hong Kong) Limited; Certified Tax Advisor; Certified Public Accountant

Warren Cheung, Senior Manager, PwC International Assignment Services (Hong Kong) Limited; Member of CPA Australia

Objectives

• Explain the new salaries tax deductions commencing in year of assessment 2019/20
• Discuss features of the deductions and eligibility for the claim on individual tax return
• Recognise common pitfalls in reporting employees’ benefit on the employer’s return reporting

Audience

Company’s compensation & benefits, human resources, finance personnel and employees.