XN000022-1975-11-08 — Page 3

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SATURDAY, NOVEMBER 8, 1975

+ IT IS INTERESTING TO NOTE THAT THIS GROUP WHICH ONLY ACCOUNTED FOR 4.8 PER CENT OF SALARIES TAXPAYERS PAID A TOTAL OF $147.8 MILLION OR ABOUT 47 PER CENT OF THE 1973-74 SALARIES TAX CHARGED,+ THE SPOKESMAN SAID.

ANOTHER SIGNIFICANT POINT WAS THAT THE AVERAGE TAX ASSESSED PER SALARIES TAXPAYER, AT $2,438, SHOWED A DECREASE OF $195 OVER LAST YEAR. THIS, THE SPOKESMAN EXPLAINED, WAS DUE TO THE LARGE NUMBER OF CASES COMING INTO THE TAX NET AT THE LOWER END OF THE INCOME SCALE.

SALARIES TAX IS CHARGED ON EMOLUMENTS ARISING IN OR DERIVED FROM HONG KONG AND IS CALCULATED ON A SLIDING SCALE WHICH VARIES FROM FIVE PER CENT TO 30 PER CENT ON NET CHARGEABLE INCOME. HOWEVER, THE OVERALL EFFECTIVE TAX RATE IS LIMITED TO 15 PER CENT OF THE INCOME WITHOUT DEDUCTION OF PERSONAL ALLOWANCES.

ASSESSMENTS OF SALARIES TAX ARE BASED ON THE ANNUAL RETURNS OF EMPLOYEES' EMOLUMENTS SUBMITTED BY THEIR EMPLOYERS, AND THE TAXPAYERS THEMSELVES.

THE PREPARATION AND ISSUE OF ASSESSMENTS ARE HANDLED BY UNIT 2 OF THE INLAND REVENUE DEPARTMENT. DESPITE THE TREMENDOUS INCREASE IN SALARIES TAX CASES, THE INSTALLATION OF A MINI-COMPUTER IN JUNE 1974 HAD ENABLE DEMAND NOTES TO BE ISSUED EARLIER THAN USUAL WITHOUT OVERTIME WORK.

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