Housing Benefits Policy – HK

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B\&G Internal Policy No: HRHK0001

Version: 2.2

Release: 30Apr2018
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This housing benefits policy offers a tax efficiency program to members of staff who rent their place of residence with a rental agreement.

Under this policy, members of staff may elect to have a proportion of their salary paid in the form of a housing allowance. The housing allowance will take the form of a reimbursement of a proportion of the actual rent paid by staff to their landlords.

Before claiming this benefit, it is your responsibility to assess its impact on your personal tax liability and whether you will be in a better or worse position as a result of claiming it.

Your liability to income tax for this benefit is affected by the Rental Value (RV) of your place of residence, which is then included in your Assessable Income. The RV is calculated at a % of your total net income from the employer as Assessable Income. The % details are as follows

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Conditions and Eligibility

1. Full time permanent staff (Growth level G2 or above) or otherwise at the Company’s discretion.
2. Unless otherwise expressly agreed in writing by the Company, the maximum proportion of monthly basic salary that a member of staff may elect to take as rental reimbursement (including rates and management fees) is 40%.
3. Staff should arrange for their expense own rental accommodation and enter into a rental agreement with the landlord at the staff’s own expenses. The Company will not incur expenses or liability in respect of the rental agreement
4. The rental agreement should be under the name of the member of staff, and the accommodation must be used by the member of staff as their principal place of residence. If the rental agreement is under joint names with other person(s), the maximum amount of rental reimbursement will be reduced proportionally
5. Staff should pay rent to the landlord and submit the original rental receipt to the HR department on or before the 20th of each month for rental reimbursement. Provided that the deadline is met, the company will provide the corresponding housing allowance to the staff in monthly payroll.
6. Staff should submit the Rental Reimbursement Application Form together with the ORIGINAL of the duly stamped rental agreement to HR for verification.
7. Originals of monthly rental receipts should show the name of the member of staff, management fee, and rates if applicable and should be issued by the landlord
8. Staff living in a dwelling provided or subsided by the government is not eligible for this program.

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The company reserves the right to amend or cancel this policy from time to time.

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COMPANY CONFIDENTIAL / INTERNAL USE ONLY
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