21-MAY-1992 15:24
INLAND REVENUE DEPT.
852 877 1082
P.01-
From..
Ref...
CONFIDENTIAL &
Commissioner of Inland Revenue
in.....
Da A AUKA
[
Tel. No.
... 11
HQ CIR/CON/18A VI
5945001
21 May 1992
Date
*
MEMO
Secretary for the Civil Service To [Attn: Miss Fanny Lawl
Your Ref..............ist...
doted
Further to our telephone conversation yesterday I set out my understanding of how the UK tax authorities will tax the Governor's salary.
2.
It is not clear whether the UK tax authorities regard the Governor as a crown servant. In this event, rules in the UK provide that the emoluments of the office or employment are chargeable to tax irrespective of where the duties are actually performed or of the residence status of the person concerned. However, this is only the case where the emoluments are payable out of the public revenue of the UK. The Guvernor's salary 15, I understand, paid by the Hong Kong Government and the Governor's residential status will therefore bé relevant.
3.
A person who is not resident in the UK and who performs the duties of his office or employment wholly outside the UK is outside the Scope of UK tax. To the extent that duties are performed in the UK the emoluments are chargeable to UK tax. However, if the duties performed in the UK are merely incidental to the overseas duties, then the duties in the UK will be treated as though they had been performed abroad.
4.
A person will normally be treated as not resident in the UK
for the whole period spent abroad if:
(a) he is abroad for a complete tax year or more; and
(b) throughout that complete tax year he works full time
wholly outside the UK; and
(c) he makes visits to the UK which average less than 91
days a tax year.
If so he will not have to pay UK tax on his earnings for the work done abroad.
S.
The Governor will be in Hong Kong up until 30 June 1997, which includes four complete tax years. Accordingly he should not have to pay UK tax on his salary.
(Anthony AU-YEUNG)
Commissioner of Inland Revenue
CONFIDENTIAL
:
9981 125 esa
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