XN000022-1995-06-28 — Page 47

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Tax liabilities of Chinese officials and enterprises in HK

Following is a question by the Hon Frederick Fung and a reply by the Secretary for the Treasury, Mr K C Kwong, in the Legislative Council today (Wednesday):

Question:

Under the local tax system, incomes earned from employment in the territory as well as net profits derived from a trade, profession or business carried on in the territory are liable to tax. In this connection, will the Government inform this Council:

(a)

whether the following three categories of people are required to pay tax;

(i)

functionaries on the payroll of the Chinese Government (non- diplomatic personnel);

(ii)

(b)

functionaries of Chinese enterprises and service institutions who are posted to the territory; and

(iii) personnel of the Hong Kong Branch of Xinhua News Agency posted to the territory, including the director and deputy directors; and

if the answer to (i), (ii) and (iii) of (a) above is in the affirmative, how many of these people have paid tax, and what is the total amount of tax paid by them in the last fiscal year and how many of them are exempted from paying tax and why?