An initial allowance of twenty per cent of the capital expenditure on machinery and plant is given for the year of assessment during which the expenditure was incurred.
An annual "wear and tear" allowance is also given, at prescribed rates, on the reducing value [i.e.—the original cost less initial and annual allowances]. The annual allowance for machinery or plant not included in the prescribed list is ten per cent. Some typical allowances mentioned in the prescribed list are as follows:-
Air conditioning plant
Room air conditioners
Bicycles
...
Diesel engines
...
•
Furniture and fixtures
...
...
Petrol-driven motor vehicles
Steam engines
Tractors
...
:
...
:.
:.
:
:
:.
...
:
:
:
:
:.
:
:
:
:
:
...
...
•
:
10%
15%
20%
10%
10%
...
25%
10%
25%
•
Provision is made for balancing allowances and charges, in case the asset is sold or disposed of at a price which differs from the written down expenditure.
5. NON-RESIDENTS AND AGENTS DEALING WITH NON-
RESIDENTS.
For purposes of Profits Tax, a non-resident is assessable either directly or in the name of his agent in respect of all his profits arising in or deriving from Hong Kong, from any trade, profession or business carried on there, whether or not the agent has the receipt of the profits, and the tax may be recovered out of the assets of the non-resident or from the agent. The agent is required to retain from the assets sufficient money to pay the tax.
Resident consignees are required to furnish quarterly returns to the Commissioner of Inland Revenue showing the gross proceeds from sales on behalf of their non-resident consignors and to pay to the Commissioner a sum equal to one per cent of such proceeds, or such lesser sum as may have been agreed.
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