The total Salaries Tax payable by an individual is restricted to an amount not exceeding the Standard Rate on his gross salary. e.g.-
A married man with two children would pay $11,475 tax on an income of $80,000 and $15,000 on $100,000 calculated as follows:-
$
Total Income
80,000
$
100,000
Personal Allowance.. 7,000
Wife Allowance
7,000
Child Allowances
100
4,000
18,000
18,000
$62,000
$82,000
Tax on $45,000
6,375
6,375
Tax on $17,000 @ 30%.......
5,100
$37,000 @ 30%
11,100
$11,475
$17,475
REDUCED to 15% on total income, i.e.—$15,000.
Salaries Tax includes the "rental value" [or rateable value as for Property Tax purposes, if the taxpayer so elects] of a residence provided rent-free by the employer or the excess of the rental value over the rent paid, if any; for this purpose the rental value is taken to be 71⁄2 per cent of the income from the office or employment, subject to lower rates for hotel and hostel accommodations. Where an employer refunds all or part of the rent paid by an employee, the place of residence is deemed to have been provided by the employer either rent-free or for an amount equal to the difference between the rent paid and the amount refunded.
7. PROPERTY TAX.
Property Tax is charged on the net rateable value of any land or building in the Colony, with the exception of land or buildings in the New Territories, and land or buildings wholly occupied by the owner as his residence. The tax is charged at the full Standard Rate* less a repairs and maintenance allowance of 20 per cent of the rateable value, and is payable by the person who pays the assessed rate on the property.
* Except on properties restricted to rents calculated by reference to those payable
prior to World War II.
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