Hunt, why do you say they're not paying tax?  Who's not paying tax?  You got proof?  

Fact is the tax law DOESN'T CARE how you made your money: you make money in HK, you are required to declare the AMOUNT, and pay tax on it ... the IRD doesn't give a hoot what you did to get it.  The only thing they want to know is to check if any of the permitted deductions apply (e.g. mortgage interest on rental income).  They ain't there to police your morals, just to collect cash.

That means it's up to each WG to keep records and file a return.  Actually, the temptation they face must be huge ... and maybe some of those who don't issue receipts have difficulty figuring out their actual income at the end of the year ... but that's another question    

Reminds me how they brought down Al Capone.  Couldn't make any of his violent crimes stick ... but prove he has money and didn't declare it as income, and he's gone.

See post #13...I said grey area and unless the IRD dude perform tax audit on them.


I have no proof but I am checking with my IRD fren to see if they have any tax file from a WG who voluntarily submit tax return.

Al capone is in US, we are talking bout HK. and he is not a prostitute, so not a good illustration.

Reality check guys: 50% is quite generous for an agency arrangement.  Even highly respected professions (accountants, lawyers, etc) work on 1/3 : 2/3 split.  

NO, that's not 2/3 to the professional, that's 2/3 to the FIRM (i.e. the managing partners) ... the highly qualified and hardworking guy that does the work only gets 1/3.  Across the board.  Don't take my word for it, ask your friends.  

Even the HG / walkup split can be seen in the employment market: I read of a guy who was already a highly respected accountant, who called on a client and was turned down.  The following week he accepted a job from a big consultancy name, called on the same client, and the client hired him for double the fee he could have hired him for a week earlier.  Rational?  No.  But we all do it.  We see the same split: a HG is about double what a walkup can ask.  You'll see the same ratio any time a guy leaves employment and sets up as a self-employed consultant, he almost always ends up invoicing 50% of the market rate that his former employer can get.  

Reality is us punters DO pay for service, and we're happy with the premium.  And WGs share the take for the convenience of having someone else handle the advertising and bookings.

Now THAT would be very interesting intel!!!

I mentioned Capone just making the point that criminal law and tax law are pretty separate - that principle is certainly true in HK.  Bureaucrats the world over all have tunnel vision

I love HK that the law is actually very simple, and is accessible on the internet.  As you say, prostitution is legal, but procurement is prohibited.  So I'm not sure I get what your question is about the legality ...

[ Last edited by  DArtagnan at 12-6-2009 10:53 ]

ya 50% is very generous plus tip they can make a lot more money than most people in hk

So... if she want 100,000 HKD
assume that
-we pay 800 for a shag, she get 400 HKD
-her average tip = 200 HKD

then 600 HKD per 1 shag.
she have to be fucked 100,000/600 = 167 times

but if she got no tip, she have to be fucked = 250 times

ummmm

Nobody knows how much they get.  I'm sure it's different.  

What makes you think there's some industry standard that all triad guys and illegal providers must follow?

I find it interesting we keep getting bros interested to know what income a WG makes. Sometimes it's just curiosity, sometimes it's jealousy that a poor uneducated girl could make "so" much money, or maybe something in between.

IMO most WGs earn every cent. If they don't, they won't be in the business very long. I accept some have it easier than others but it's not an easy occupation and it is short-lived.

There are numerous hidden costs, some alluded to here, so their net income should not be confused with what we see as paid in the hand.

The paying tax question is, well surprising, how can an illegal worker pay tax? If she is legal then that's another thing all together ..... the cash economy is not what anyone would call "transparent".

For reference, I had a friend in London who worked as an escort and the agency fee was 30%. But this was £500/hour so in absolute terms the agent is still doing pretty well.

Those that came in to HK with tourist visa or unlawful border crossing, they are illegal.....so understood tax  liability is not applicable to them.

Those with HKID and considered as permanent resident ing HK........this is the question. Legal to work as prostitute in HK (assume not via pimping or solicitation) but is it illegal if they do not  pay/submit tax?...........this is the gray zone I always want to know........

if they have to pay taxes, i seriously don't know how the IRD intends to audit them

the gal might issue a receipt to u.......keep it for filing purposes
or the IRD do an estimation....like how many chickens can a restaurant can sell in a day.
Well, we do have some accountant/auditor here such as the poster who estimate the monthh;y/ yearly earning of the gal.

Here is my 2 cents worth (pun intended)

There are all kinds of hidden charges for the HGs.  The pictues for the dB go for thousands, transport for the illegally documented goes for thousands and lodging (for those less popular, they share hotel rooms and have to go back to some lodging) can add up.  So when a HG comes, she is already many thousands in debt BEFORE she gets the first customer.

[ Last edited by  xiao38 at 14-6-2009 01:31 ]

For HG, I always thought her manager covered the costs through the 50% compensation received.  Pretty tough then if the debt is paid for out of her cut.  For 141 DB, cost is $1100/mth, so that's not considerable (and would be paid for with a couple of days' worth of tips), but lodgings are a big expense.

[ Last edited by  Thai-delight at 14-6-2009 02:53 ]

Actually the cost in gettting listed is in getting the HG's pictures taken and photoshopped rather than getting listed.  Unfortunately, no, management does not cover those fees and they get subtracted in the end.

I expect the HK tax guys would have the legal WGs on their radar, they would be incompetent or corrupt if they didn't (like look the other way for freebies). Look how many WGs operate openly for years, it won't take Sherlock Holmes to track them down. Most tax systems use some form of reasonableness testing of income by industry to identify persons for audit, especially for cash businesses. The up side is the WGs should be able to claim valid expenses.

However I'm sure many WGs will try to fly under the tax radar, or run two sets of books, the temptation in "cash" business is strong.

PS: I wonder how Bros who look like taxation officers find their WG visits ..... maybe lots of locked doors, nobody home.

Who gives a shit whether they pay taxes or not?! What is this anyway - a whoreboy forum for tax accountants?

This white boy from a small New England WASP town, is amazed that he gets intimate access to a beautiful young body for so little money. As far as I'm concerned, they earn every penny.   

You guys complaining about how much money these girls can make - take a good look at yourselves -  do you honestly think that a week of whatever it is that you do for a living provides as much happiness to others as these girls give in 45 mins?

Nobody give a shit bcos we are punters who just wanna have fun. sombody brought this up and we deliberate the issue together.
But I thought we were all discussing bout the legality and grey aspect of the HK prostitution, no? Hence, no conclusive ground for any to say if it is legal or illegal in HK, just the acceptance level by each individual towards the sex profession.
but then , who give a shit............let's all punt and worry shit bout how much the WG actually earn...

[ Last edited by  hunter at 14-6-2009 23:38 ]

Hunter, there's nothing ambiguous about it. The law is quite clear. "A girl is allowed to work by herself for her own profit. However, no third party is allowed to profit from a sex workers efforts; hence agents, pimps, and brothels are illegal." It's the same system that exists in the UK.

The walkups are legal. Hotel girls and brothels aren't.

Whether a girl pays taxes or not is a completely different issue. Not paying taxes on any taxable income is illegal regardless of what that activity is.

Your jibe is funny, on the mark as usual.   

I don't give a shit about WGs paying or not paying tax either Mars, but Bros are free to talk shit if they want .... it's just Q&A, lighten up