Where a resident carries on business with a non-resident and the business is so arranged that it produces to the resident either no profits or less than the ordinary profits that might be expected to arise to an independent concern, the business may be treated as carried on in Hong Kong by the non-resident through agent.
Where the true profits of a non-resident from a trade, profession or business carried on in Hong Kong cannot be readily ascertained, they may be computed on a fair percentage of the turnover in Hong Kong.
Where the accounts of a non-resident whose head office is outside Hong Kong do not disclose the true profits of a Hong Kong permanent establishment, the profit of the branch for tax purposes is taken to be the amount which bears to the taxpayer's total profits the same proportion as his turnover in Hong Kong bears to his total turnover.
6. SALARIES TAX.
Salaries Tax is chargeable on all income arising in or deriving from Hong Kong in respect of any office, employment, or pension. Income arising in or derived from the Colony includes all income derived from services rendered in the Colony. Salaries Tax is charged at graduated percentages of the Standard Rate on the total income from employment, less deductions as follows: allowance for taxpayer, HK$7,000; allowances for wife, HK$7,000; allowances for children, HK$2,000 for each of the first two children, HK$1,000 for each of the third, fourth, fifth and sixth and $500 for each of the seventh, eighth and ninth, making the maximum total child allowance HK$9,500. Premiums paid for life insurance are allowed as deductions, to an amount not exceeding one-sixth of the amount by which the total assessable income exceeds HK$7,000.
Tax is charged on the following:--
(a) Upon the first five thousand dollars (b) Upon the next five thousand dollars
(c)
do
(d)
do
(e)
do
(f)
- do
(g)
do
(h)
do
(i)
do
24 per cent
5 per cent
8 per cent
11
per cent
14 per cent
17 per cent
20 per cent
23 per cent
(j) Upon the remainder
26 per cent 30 per cent
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