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Allowances.
Propor tionate allowances.
Proof of claims.
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11. (1) There shall be deducted from the assessable income chargeable to salaries tax of any individual before arriving at the net chargeable income-
(a) an allowance of three thousand dollars;
(b) an allowance of two thousand dollars, if, at any time during the year preceding the year of assessment, he had a wife;
(c) an allowance of one thousand dollars, if he had living at any time during the year preceding the year of assessment an unmarried child who was either under the age of eighteen years or who, if over the age of eighteen years and under the age of twenty-five years, was receiving full time instruc- tion at a university, college, school, or other educational establishment, and where he had more than one such child an allowance of one thousand dollars for each such child in excess of one:
Provided that--
(i) no such allowance shall be made in respect of a child whose income from any source for the year preceding the year of assessment exceeded one thousand dollars;
(ii) no such allowance shall be made in respect of a child who carried on or exercised during the year preceding the year of assessment a trade, business, profession, vocation, or employment; and
(iii) the total allowances under paragraphs (b) and (c) shall not exceed six thousand dollars.
(2) For the purposes of this section-
(a) wife," means the lawful wife of any person married to him by a Christian marriage or its civil equivalent, or in the case of Chinese or any other Asiatic the principal spouse, but it does not include a wife who is living apart from her husband under the decree of a competent court or a duly executed deed of separation.
(b) "child" of an individual includes a child by his wife or by a former wife and a step-child. It includes also an adopted child and, in the case of Asiatics, a child by his concubine if such child is recognized by him and his family as a member of his family.
(3) An individual who is liable to tax under this Chapter for a part only of a year of assessinent shall be entitled for that year to the same proportion only of the allowances under this section as the number of days during which he is liable bears to the number of days in that year of assessment.
(4) Every individual who claims an allowance under this Section shall make his claim on the prescribed form. Such allowance shall be granted if the claim contains such particulars and is supported by such proof as the Commis- sioner may require.
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Salaries
12. (1) Salaries tax shall be charged for each year of Rates of assessment upon the net chargeable income for that year Tax. calculated as provided by sections 9, 10 and 11 at the following rates:--
(a) upon the first five thousand dollars at four per cent. (b) upon the remainder at ten per cent,
Provided that where an individual is liable to tax under this Chapter for a part only of any year of assessment, the said sum of five thousand dollars shall be reduced in the proportion which the number of days during which he is so liable bears to the number of days in that year of assess-
ment.
(2) Notwithstanding the provisions of sub-section (1) the tax payable for any year of assessment by an individual who is liable to tax throughout such year shall not be more than the amount by which his assessable income for that year exceeds four thousand eight hundred dollars.
CHAPTER IV.
PROFITS TAX.
13. Corporation Profits Tax shall be charged on every Imposition corporation carrying on trade or business in the Colony on tion Profits of Corpora. the full amount of the profits of such trade or business Tax. which are made from transactions in the Colony of such trade or business, ascertained in accordance with the provisions of this Chapter, at the rate of ten per cent.
of Business
14. Business Profits Tax shall be charged on every Imposition person or firm other than a corporation carrying on trade, Profits Tax. profession or business in the Colony on the full amount of the profits of such trade, profession or business made from transactions in the Colony, ascertained in accordance with the provisions of this Chapter, at the following rates :---
On profits exceeding $10,000 and not exceeding $100,000--five per cent. of the profits in excess of $10,000. On profits in excess of $100,000 ten per cent. on the
excess.
Provided that no tax shall be paid on any profits not exceeding $10,000.
15. The profits of any person shall be exempt from Exemption Hong Kong Profits Tax if the whole income of such
of profits person is liable to liable to Income Tax in the United Kingdom or in any other Empire part of the British Empire.
Income Tax.
allowed in
16. There shall be deducted, for the purpose of ascer- Deductions taining profits under this Chapter, all outgoings and expenses ascertaining incurred in the production thereof including-
(a) an allowance for the depreciation by wear and tear
of plant, machinery, and fixtures arising out of their use by the owner thereof in a trade or business carried on in the Colony such sum being calculated at such fixed rates as may
profits.
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