JAN-1993 20:06
HK GOVERNMENT HOUSE
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Q5:
When was the exemption introduced?
A5:
Q6:
A6:
852 521 1868
P.04
The exemption was introduced in 1940 when taxation of earnings and profits was first introduced by the War Revenue Ordinance. It was carried over into the Inland Revenue Ordinance, first enacted in
1947.
Is the Governor exempt from tax because he is the
Sovereign's representative in Hong Kong?
It is likely that exemption from salaries tax was
originally granted to Governors of Hong Kong because they were the Sovereign's representatives. The specific basis for the exemption, however, is
the Inland Revenue Ordinance.
Q7:
A7:
If the Queen is going to pay tax should not the
Governor, too?
There are two points here. The first is that the Memorandum on the Queen's position has not yet been published, so the details of the proposed arrangements are not yet clear. The Memorandum will be available later in the year. The second is
that the Queen has agreed to pay tax on one part of her assets her private investment income.
S
However, the Governor has made it clear that once
the Memorandum on the Queen's tax position has been published, the Administration should review it carefully to see if it has any direct implications for his own contract of appointment.