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CHANGES IN CONDITIONS
Notwithstanding anything said in the foregoing Sections, the Hong Kong Government reserves the right to alter the terms and conditions of service as may become necessary from time to time.
The information in this memorandum is the latest available at the date of issue.
April 1974
SALARIES TAX
(Copied from the 6th Edition of the "Synopsis of Taxation in Hong Kong" issued by the Inland Revenue Department, Hong Kong.)
The Scope of the Charge
This tax is imposed on all income arising in or derived from Hong Kong from any office or employment or any pension. "Income arising in or derived from the Colony" without in any way limiting the meaning of the expression, includes all income derived from services rendered in the Colony. With effect from the year of assessment 1971/72 special provisions apply to seamen, airmen and other persons who visit the Colony for short periods. The effect of the se provisions is to exclude the income of these persons from Income includes, charge to tax in the majority of cases. inter alia, the value of quarters provided rent free by an employer or the excess of this value over the rent actually paid by the employee to his employer for the quarters. An upper limit of 72% of the employee's total income from the employer providing the quarters is placed on the value to be included in assessment. Where an employer refunds all or part of the rent paid by an employee, the place of residence is deemed to have been provided by the employer either rent free or for an amount equal to the difference between the rent paid and the amount refunded.
husband.
The income of a wife is deemed to be that of her
The Basis of Assessment
For years up to and including 1972/73 the basis of assessment for Salaries Tax followed broadly the basis for Profits Tax. As from the year 1973/74 liability to Salaries Tax is based on the actual income of the year of assessment, a charge being made for Provisional Salaries Tax to be paid in the year of assessment itself. After the end of the year of assessment when the assessment to Salaries Tax is made, any difference between the Salaries Tax payable and the Provisional Salaries Tax paid is merged with the Provisional Salaries Tax charge for that following year. Provisional Salaries Tax for a year is based on the income less allowances of the preceding year unless there was not income of a full year in the preceding year in which event the Provisional Charge is based on the estimated income less allowances of the year of assessment itself.
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