Tax Tips for Americans in Hong Kong

If you have U.S. tax filing obligations and live in Hong Kong, check out these tax tips:

  1. Although your Hong Kong taxes are reported on an April to March fiscal year, you will need to report your U.S. taxes on a January to December calendar year. Be sure to maintain records of when you received income and incurred deductible expenses to ensure that any items reported on your tax return can be properly substantiated.

  2. As a general matter, the taxes you pay in Hong Kong are less than the taxes you would owe in the U.S. Consequently, you will likely be best served by claiming the foreign earned income exclusion and foreign housing exclusion to offset your U.S. tax liability. Due to the high cost of living, the housing exclusion amount allowed on your returns is substantial.

  3. If you hold a Mandatory Provident Fund Scheme account, contributions made to your account by your employer will need to be reported as additional wage income on your U.S. tax return. Additionally, your MPF account should be reported on your FBAR if you have a filing requirement.