When negotiating your new employment terms, you may wish to negotiate for a specific, separate housing allowance rather than incorporating the amount of the housing allowance into your remuneration as a whole (and getting a higher salary). This is because a specific housing allowance is taxed concessionally by Hong Kong authorities (generally, the value of your actual housing allowance is deducted from your taxable income, and your income is notionally adjusted higher by 10% – which means you stand to benefit if your housing allowance is a much higher amount that the notional adjusment to your income). We can help to review your employment contract to ensure that this is appropriately drafted.
