Scope of charge
1. arising in, or derived from HK 领土税制
2. arising in, or derived from: employment, office and pension
identify HK employment vs non HK employment:
step 1: apply the 3 factors tests
# residence of employer: where central management exists 最重要的factor
# where employment contract was negotiated, entered into, and is enforceable
# where remuneration is paid
以上三选一符合条件则为HK employment
step 2: totality of facts: who is the real employer
e.g. 大陆母公司付工资，但是你work for 香港子公司，仍然是HK employment
! even not meeting any one factor, still need to go for "totality of facts"
Partly in and outside HK：
only income derived from HK services is chargeable: so, time basis apportionment and qualified as "visitor"
visits: no definition, where one's base is, if HK, then non-visitor, must be a temporary stay in HK 主要看where is your family
time basis apportionment rule: "60-day" rule
length of taxpayer's visits not more than 60 days, 以physical presence为准,not services rendered
针对foreign income tax paid claim:
grant exemption from HK salaries tax regarding income for services overseas which has borne foreign tax
在income之后，deduction和personal allowance等之前先扣除
Assessable income
# wages, salary, leave pay
# fee, commissions
# bonus, gratuity
lump-sums on cessation and deferred pay: gratuity paid upon termination of an office or employment or any contract of employment
IRO permits claim for spreading back up to max of 36 months
claim made in writing within 2yrs of the end of the y/a which payment is made
# allowance
# education benefits to taxpayer's child
# holiday journey
# payment in lieu of notice
# others, e.g. fringe benefit
关于fringe benefits（额外津贴）taxable or not:
principle 1 : ability to convert into cash 存在公共市场 比如car antique
principle 2 : discharege of taxpayer's pecuniary liabilities
以上符合其一，则taxable
Exempt income
1. pension attributable to services rendered outside HK
2. nature of alimony or maintenance (离婚后一方给另一方的生活费，抚养费）
3. compensation for loss of rights
4. not attributable to a particular employee e.g. group medical insurance policy
Allowable deductions
Criteria: should be wholly, exclusively and necessarily incurred in the production of assessable income 必须是essential to the production of assessable income
Refer to DIPN#9
1. travelling expenses( if employer not reimbursed) deductible
2. professional subscription (only 1 professional bogy) deductible
3. further education and exam fees: e.g. self-education expenses deductible
Housing benefits and Rental value
由employer or an associated corporation 提供的，且是 place of residence, rent free, at a rent less than rental value, 则rental value is taxable
Calculation of RV:
a fixed % on employee's income less dedecutions
4%- not more than one bedroom in hotel
8%-not more than two bedrooms in hotel
10%-all other cases
Calculation of net RV: RV minus self-contribution
Self education expenses and other concessionary deductions
self education expenses: the tuition and exam fees can be deductible but only the course undertaken to gain or maintain qualifications for use in any employment
should be reasonable and shouldn't be far related to current job; limit100,000
Charitable donation: total amount within 35% of the net assessable income after dedecutions, at least $100 for each donation of money
Elderly residential care expenses
A parent or grandparent aged 60 or more or under 60 but eligible to claim Government's disability allowance scheme
limit: 100,000
deduction won't be allowed to more than one person with respect to one parent or grandparent
有这个，就不能有dependent parent allowance
Home Loan interest
limit; 100,000
Contribution to retirement scheme
Health insurance premiums
Qualifying annuity premium
MPF voluntary contributions
Personal allowance
when you meet the criteria, you take the whole number
# basic
# married person's
basic 和 married person's 只能二选一 for a Y/A
# dependent parent
get DPA only: at least resides with parent a continuous period of 6months or contributes at least $12,000 in y/a
get also ADPA: must reside with parent continuously throughout the whole year
# dependent grandparent
DPA和DGA不能是指的同一个人, DPA in respect of those elderly aged 55-60: half of the amount
# dependent brother or sister
# child
# single parent
# disabled dependent
# personal disability
Salary tax computation
lower of the following:
net chargeable income * progressive rates
net assessable income(before personal/married person's allowance) * standard rate
joint assessment
the spouse can tell IRD that they want to go for joint assessment
在deduction 和personal allowance之前，将spouse的income合在一起，
