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HONG KONG ANNUAL REPORT
to $9,837, 120. Of this sum, $9,333, 120 is the amount received up to 31st March, 1956, against the $48,000,000 loan which has been promised by Her Majesty's Government in con- nexion with the development of Kai Tak Airport. The other loan, amounting to $504,000, is made under Colonial Development and Welfare Scheme D. 1967-Loans to Fisher- men for Mechanization of Craft. Of this $490,066 has already been issued to fishermen. Details of Colonial Development and Welfare grants and loans are given at Appendix I.
TAXATION
Earnings and Profits Tax, which takes the place of the more orthodox type of income tax, was first imposed by the Inland Revenue Ordinance (Cap. 112) in 1947. It falls into four separate taxes. In each case the amount levied is limited to tax on specified income or profits arising in, or derived from, the Colony. The standard rate of tax for the 1956/57 year of assessment is 12%, a rate which has remained un- changed since 1950-1.
The four separate taxes are:
(1) Profits Tax (sub-divided into a Corporation Profits Tax and a Business Profits Tax), charged at the standard rate on all companies or businesses operating in the Colony. In the case of unincorporated businesses, no tax is payable provided profits do not exceed $7,000. Otherwise tax is payable in full on all Hong Kong profits.
(2) Salaries Tax, charged on all individuals in receipt of income from employment. This is charged at graduated rates, ranging from one-fifth of the standard rate on the first $5,000 of net chargeable income, to double the standard rate on net chargeable income exceeding $45,000. In arriving at net chargeable income the following allowances are first deducted:
(a) Personal allowance-$7,000. (b) Allowance for wife-$7,000.