THE CHARGE TO SALARIES TAX.
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1.
GENERAL CHARGE
Salaries tax is charged on any individual who is in receipt of income from any office or employment, or any pension. The taxable income is limited to income arising in or derived from Hong Kong and this includes income derived from services rendered in Hong Kong.
2.
TAX YEAR
The Tax Year is from 1st April to the following 31st March.
3.
SPECIAL CASES
Special provisions apply to seamen, aircrew and other persons who visit Hong Kong for short periods. The effect of these provisions is exclude the income of these persons from charge to tax, in the majority of cases.
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5.
INCOME
Income from any office or employment, in general terms, includes wages, salary, leave pay, fees, commission, bonus, gratuity, perquisite or allowance. "Perquisite or allowance" may include such items as education allowance, salaries tax borne by the employer, cost of living allowance, payment or reimbursement by the employer of an employee's personal expenses, tips, and so on. Income also includes the "rental value" of quarters provided rent free by an employer, or the excess of this value over the rent actually paid by the employee to his employer for the quarters.
QUARTERS
The value of quarters to be included in the Salaries Tax Assessment is 10% of the total assessable income (net after expenses, etc.) from the employer or any corporation associated with the employer who provided the quarters.
Lower percentages apply where hotel or hostel type accommodation is provided. 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. On the other hand, so called "rent allowances" payable to employees, over which the employer does. not exercise any control, are regarded as cash allowances and are assessed as such.
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6.
HUSBAND'S AND WIFE'S INCOME
The income of wife (but not a wife who is living apart from her husband) is included with that of her husband. A Salaries Tax Assessment includes therefore the income of the husband and his wife
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