ENG-1954 — Page 59

PUBLIC FINANCE AND TAXATION -

(c) Child allowance ranging from $2,000.00 for the first child to $200.00 for the ninth child.

The maximum charge, however, is limited to tax at the standard rate on the total assessable income without the deduction of any allowances.

(3) Interest Tax which is charged at the standard rate on most interest payments. It is normally collected from the payer of the interest, who deducts it at source from the interest paid.

(4) Property Tax which is charged at half the standard rate on the net rateable value of all land and buildings situated in the Colony."

As an alternative to these separate taxes a resident of the Colony may elect to be personally assessed on his total Hong Kong income. A single assessment is then made by allowing similar allowances and charging similar rates of tax as is the case in Salaries and Annuities Tax. A set-off is then allowed for any of the four separate taxes already paid.

Revenue derived from the four taxes in the 1953/54 year of assessment was as follows:-

Corporation Profits Tax

...

$58,671,806.43

Business Profits Tax

Salaries & Annuities Tax

Interest Tax

29,833,743.84 $ 88,505,550.27

9,635,233.69

2,927,416.13

Property Tax

11,141,772.47

Personal Assessment

2,260,478.30

Total .........

$114,470,450.86

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