581470-1940-Ordinances-passed-and-assented-to--Summary-Offences-Amendment--No-10-of-1940--Interpretation-Amendment--No-11-of-1940--Fire-investigation-Amendment--No-12-of-1940--War-Revenue--No-13-of-1940 — Page 12

THE HONG KONG GOVERNMENT GAZETTE, APRIL 26, 1940.

Salaries

12.—(1) Salaries tax shall be charged for each year of Rates of assessment upon the net chargeable income for that year Tax. calculated as provided by sections 9, 10 and 11 at the following rates:

(a) upon the first five thousand dollars at four per cent.

(b) upon the remainder at ten per cent,

Provided that where an individual is liable to tax under this Chapter for a part only of any year of assessment, the said sum of five thousand dollars shall be reduced in the proportion which the number of days during which he is so liable bears to the number of days in that year of assess-

ment.

(2) Notwithstanding the provisions of sub-section (1) the tax payable for any year of assessment by an individual who is liable to tax throughout such year shall not be more than the amount by which his assessable income for that year exceeds four thousand eight hundred dollars.

Provided that where an individual is liable to tax under this Chapter for a part only of any year of assessment the tax payable shall not be more than the amount by which his assessable income exceeds $4,800 reduced in the proportion which the number of days during which he is so liable bear to the number of days in that year of assessment.

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CHAPTER IV.

PROFITS TAX.

of tion Profits

13. Corporation Profits Tax shall be charged on every Imposition corporation carrying on trade or business in the Colony on Corpora the full amount of the profits of such trade or business Tax. which are made from transactions in the Colony of such trade or business, ascertained in accordance with the provisions of this Chapter, at the rate of ten per cent.

Profits Tax.

14. Business Profits Tax shall be charged on every Imposition person or firm other than a corporation carrying on trade, of Business profession or business in the Colony on the full amount of the profits of such trade, profession or business made from transactions in the Colony, ascertained in accordance with the provisions of this Chapter, at the following rates:

On profits exceeding $10,000 and not exceeding $100,000-five per cent. of the profits in excess of $10,000.

On profits in excess of $100,000-ten per cent. on the

excess.

Provided that no tax shall be paid on any profits not exceeding $10,000.

liable to

15. The profits of any person shall be exempt from Exemption Hong Kong Profits Tax if the whole income of such person is of profits liable to Income Tax in the United Kingdom or in any other Empire part of the British Empire.

Income Tax

16. There shall be deducted, for the purpose of ascer- Deductions taining profits under this Chapter, all outgoings and expenses ascertaining incurred in the production thereof including-

allowed in

profits.