1989 Ed.]
Inland Revenue
[CAP. 112
27
(1A) (a) Notwithstanding subsection (1)(a), where an employer or associated corporation refunds all or part of the rent paid by the employee, such refund shall be deemed not to be income;
(b) a place of residence in respect of which an employer or associated corporation has refunded all the rent therefor shall be deemed for the purposes of subsection (1) to be provided rent free by the employer or associated corporation;
(c) a place of residence in respect of which an employer or associated corporation has refunded part of the rent therefor shall be deemed for the purposes of subsection (1) to be provided by the employer or associated corporation for a rent equal to the difference between the rent paid by the employee and the part thereof refunded by the employer or associated corporation. (Added 36 of 1954 s. 2. Amended 38 of 1975 s. 2)
(2) The rental value of any place of residence provided by the employer or an associated corporation shall be deemed to be 10% of the income as described in subsection (1)(a) derived from the employer for the period during which a place of residence is provided after deducting the outgoings, expenses and allowances provided for in section 12(1)(a) and (b) to the extent to which they are incurred during the period for which the place of residence is provided and any lump sum payment or gratuity paid or granted upon the retirement or termination of employment of the employee: (Amended 35 of 1965 s. 6; 26 of 1969 s. 10; 7 of 1975 s. 3; 38 of 1975 s. 2)
Provided that-
(a) if such place of residence be a hotel, hostel or boarding house the rental value shall be deemed to be 8% of the income aforesaid where the accommodation consists of not more than 2 rooms and 4% where the accommodation consists of not more than one room;
(b) if such place of residence be other than a hotel, hostel or boarding house any person may elect to have-
(i) in respect of the years of assessment up to and including the year of assessment commencing on 1 April 1982, the assessable value ascertained in accordance with section 5A; or
(ii) in respect of the years of assessment commencing on or after 1 April 1983, the rateable value included in the valuation list prepared under section 12 of the Rating Ordinance (Cap. 116) or, if the place of residence is not so included, the rateable value ascertained in accordance with Part III of that Ordinance,
substituted for rental value at 10% as aforesaid. (Replaced 10 of 1950 s. 3. Amended 38 of 1975 s. 2; 76 of 1975 s. 7; 8 of 1983 s. 10)