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WEDNESDAY, MAY 11, 1977
+CRITICS OF HONG KONG'S PERSONAL TAXATION SYSTEM WHO SUGGEST THAT IT OPERATES HARSHLY AGAINST THE LOWER AND MIDDLE INCOME GROUPS ARE THEREFORE BEING LESS THAN FAIR,+ HE SAID.
COMMENTING ON THE NEW SUPPLEMENTARY PERSONAL ALLOWANCE. THE SPOKESMAN SAID, THIS MEANS THAT A SINGLE PERSON EARNING UP TO $12,500 A YEAR, OR A MARRIED PERSON EARNING UP TO $25,000 A YEAR, WILL NO LONGER PAY SALARIES TAX. +
THEREAFTER, FOR EVERY DOLLAR OF INCOME IN EXCESS OF $12,500 IN THE CASE OF A SINGLE PERSON AND $25,000 IN THE CASE OF A MARRIED PERSON, THE SUPPLEMENTARY ALLOWANCE WILL BE REDUCED (+CLAW-BACK+) BY 15 CENTS UNTIL THE ALLOWANCE IS ELIMINATED, THIS POINT IS REACHED WHEN A SINGLE PERSON'S YEARLY INCOME REACHES $29,167 AND WHEN A MARRIED PERSON'S INCOME REACHES $58,334, ALTHOUGH OF COURSE THE TAXPAYER CONTINUES TO RECEIVE THE BASIC PERSONAL ALLOWANCE OF $10,000 IF HE IS SINGLE AND $20,000 IF MARRIED.
THE SPOKESMAN ALSO GAVE THE FOLLOWING EXAMPLES TO HELP THE PUBLIC UNDERSTAND BETTER THE ARITHMETIC OF THE ASSESSMENT FOR SALARIES TAX:
EXAMPLES OF THE CALCULATION OF SALARIES TAX
WITH THE INCREASED ALLOWANCES
EXAMPLE 1 SINGLE PERSON EARNING $22,000 A YEAR
LESS
SALARY
SINGLE ALLOWANCE
$22,000
12,500
9,500
ADD:
+CLAW BACK+ (15% OF $9,500)
1,425
NET CHARGEABLE INCOME
$10,925
TAX THEREON
$
592
NOTE: (ACTUAL SUPPLEMENTARY PERSONAL ALLOWANCE IS THEREFORE
$2,500
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$1,425 $1,075)
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/EXAMPLE 2