1941-HKRS28-8-2_Part01 — Page 24

Proof of claima

Rates of Salaries

Тах

Imposition

tion Profits Tax.

(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.

14-(1) Salaries tax shall be charged for each year of assessment upon the net chargeable income for that year calculated as provided by sections 9 to 15 at the following

rates ----

(a) upon the first five thousand dollars at six per cent. (b) upon the remainder at fourteen 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 three thousand six hundred dollars :

Provided that where an individual is liable to fax under this Chapter for a part only of any year of assessment the tax payable shall not be more than the amount by which his assessable income exceeds $3,600 reduced in the proportion which the number of days during which he is so liäble beare to the number of days in that year of assessment,

CHAPTER IV.

Profits Tax.

15. Corporation Profits Tax shall, subject to the pro- of Corpora visions of this Ordinance, be charged on every corporation carrying on trade or business in the Colony at the rate of fourteen per cent. in respect of the profits arising in or derived from the Colony from such trade or business.

Imposition

of Barizesa Profits Tax.

16. Business Profits Tax shall, subject to the provisions of this Ordinance, be charged at the rates specified in this section on every person other than a corporation carrying on trade, profession or business in the Colony in respect of the profits arising in or derived from the Colony from such trade, profession or business :----

Upon the first fifty thousand dollars-seven per cent. Upon the remainder-fourteen per cent.

Provided that :-

(i) where the profits assessable under this section from

a trade, profession or business do not exceed the sum of five thousand dollars, no tax shall be chargeable in respect thereof;

(i) the Profits Tax payable by any person or partner- ship other than a corporation in respect of the profits from any trade, profession or business shall not be more than the amount by which the profits from such trade, profession or business exceed the sum of five thousand dollare;

(ii) for the purpose of assessing the profite of a trade, profession or business, a husband and wife who are not living apart fom each other under the decree of a competent court or a duly executed deed of separation shall be deemed to be one person.

17. The protita of any person shall be exempt from Exception

of profita Hong Kong Profits Tax if the whole income of such person is able to liable to Income Tax in the United Kingdom or in any other Empira part of the British Empire.

Тисота Так.

allowed in

profits.

Deductions

18. There shall be deducted, for the purpose of asser- taining profits under this Chapter, all outgoings and expenses cortsining incurred in the production thereof including-

(a) a reasonable allowance for the depreciation by wear and tear of assete arising our of their use by the owner thereof in a trade, profession or business carried on by him, auch allowance being calculated at the rates prescribed by the Board of War Taxation, provided that the Commissioner may in his discretion allow a higher rate.

(b) where any asset in respect of which depreciation is allowable has been sold or discarded without the said trade, profession or business ceasing, the loss attributable to the excess of the writton-down value over the sum, if any, realized or likely to be realized by the sale, thereof.

Provided that-----

(i) any corresponding profit shall be treated as a receipt of the trade, profession or business, and

(i) where such asset was only partly used or employed. in such trade, profession or business the deduction or addition under this sub-section shall be proportionately reduced;

(o) any sum expended for the repair (but not renewal) of assets in respect of which depreciation is allowable:

Provided that any person may claim as regards his assets, in respect of which depreciation is allowable, that the cost of renewal be deducted in place of the depreciation and loss mentioned in paragraphs (a) and (b) of this sub-section, and his claim shall be allowed on such conditions as the Commissioner may prescribe;

(4) such sum as the Commissioner in his discretion considers ressonable for bad debts incurred in any trade, profession or business, which have become bad during the period of which the profits are being ascertained, and for doubtful debts to the extent that they are estimated to have become bed during the said period, notwithstanding that such bad or doubtful debts were due and payable prior to the commencement of the said period:

Provided that all sums recovered during the said period on account of amounts previously written off or allowed in respect of bad or doubtful debts shall for the purposes of this Ordinance be treated as receipts of the trade, profession or business for that period;