TNAG-1617-FCO40-2225-Executive-Council-of-Hong-Kong-memoranda-and-minutes-of-meet-1987 — Page 13

(c)

(d)

(e)

(£)

(g)

person. The amount of the reduction will be 10%

of the difference between the income and $34,000

or $70,000 as the case may be (clauses 6 and 11);

increase the allowance for a first child from

$9,000 to $11,000 and for a second child from

$6,000 to $8,000 (clause 6);

widen the band to which the 15% marginal rate of

personal tax applies from $10,000 to $20,000

(clause 10);

reduce the rate of tax on corporate profits from

18% to 18% (clauses 3 and 8);

simplify the assessment to salaries tax of those

employees who, in any year, render services both

within and outside Hong Kong by prescribing when

time apportionment will or will not be granted

(clause 2); and

as an anti-avoidance measure, make it clear that

where a right to receive income from property is

transferred by a person to another person without

transferring the ownership of the property and

consideration has been received or is receivable

in respect of the transfer, the amount of

consideration is deemed to be a receipt

chargeable to profits tax (clauses 4 and 5).

2. The concessions under paragraphs 1(a) to (e) will

apply for the first time to provisional and final

assessments for the year of assessment commencing on 1

April 1987.

Time apportionment will apply to assessments