PUBLIC FINANCE AND TAXATION
73
The standard rate of tax has been unchanged since 1950-1 and for the year of assessment 1957-8 it remains at 12%. Profits of businesses and most interest payments and an- nuities are charged in full at the standard rate. Small un- incorporated businesses whose profits do not exceed $7,000 are, however, exempt from Profits Tax. Property Tax is charged at half the standard rate on the net rateable value of all land and buildings in the Colony (other than in the New Territories). In charging Salaries Tax on income from employment and pensions, certain allowances are first deduct- ed from the assessable income. They include Personal Allow- ance at $7,000, allowance for wife at $7,000, and allowances for children ranging from $2,000 for the first child to $200 for the ninth child. The balance is then charged at graduated rates rising from 21% on the first $5,000 to 25% on net chargeable income exceeding $45,000. The maximum charge, however, is limited to tax at the standard rate on the total assessable income without deduction of any allowances.
Although the Ordinance imposes four separate taxes, every resident may elect to be personally assessed on his total Hong Kong income. He is then given similar allowances and charged at graduated rates as for Salaries Tax, and a set-off is allowed for any of the four taxes already paid.
Taxes collected under the Inland Revenue Ordinance con- stitute the second largest single item of the public revenue of the Colony. The estimated revenue from this source for 1957-8 is $95,000,000, and is exceeded only by the estimate. of $96,200,000 for duties under the Dutiable Commodities Ordinance.
Estate Duty is levied on conventional lines at rates vary- ing from 2% to 52% on estates valued at $5,000 to over $30,000,000 respectively. The estimated revenue from this duty for 1957-8 is $12,000,000.
Stamp Duty legislation in the Colony is based on the United Kingdom Stamp Acts. Fixed duty varies from 10 cents on proxy forms to $20 on deeds. Ad valorem duty