Tax Assignment in Hong Kong
Question 1
Ans:
Mr. Chan
Salaries tax
Year of assessment 2010/11
Basic period: year ended 31 March 2010
$ $
Salary ($100,000*12) 1,200,000
Education benefits 150,000
Reimbursement of tuition fees 100,000
Reimbursement of utilities 50,000 1,500,000
Add: Rental value (($1,500,000-2,000)*10%) 149,800
Less: Rent suffered ($20,000*50%*12) 120,000 29,800 1,529,800
Less: Professional subscription 2,000
Net assessable income 1,527,800
Less: Married person’s allowance 216,000 Child allowance 100,000 316,000
Net chargeable income 1,211,800
Progress rate on $1,211,800: $40,000 at 2% 800
$40,000 at 7% 2,800
$40,000 at 12% 4,800
$1,091,800 at 17% 185,606 194,006
Standard rate 15%*$1,527,800=$229,170
Salaries tax payable
Lower of $194,006 and $229,170 less $6,000 tax waived $188,006
Mr. Chan
Property tax assessment
Year of assessment 2010/11
Basic period: year ended 31 March 2011 $
Rent received ($15,000*12) 180,000
Non-refundable rent ($30,000*12/36) 10,000
Ans:
Mr. Chan
Salaries tax
Year of assessment 2010/11
Basic period: year ended 31 March 2010
$ $
Salary ($100,000*12) 1,200,000
Education benefits 150,000
Reimbursement of tuition fees 100,000
Reimbursement of utilities 50,000 1,500,000
Add: Rental value (($1,500,000-2,000)*10%) 149,800
Less: Rent suffered ($20,000*50%*12) 120,000 29,800 1,529,800
Less: Professional subscription 2,000
Net assessable income 1,527,800
Less: Married person’s allowance 216,000 Child allowance 100,000 316,000
Net chargeable income 1,211,800
Progress rate on $1,211,800: $40,000 at 2% 800
$40,000 at 7% 2,800
$40,000 at 12% 4,800
$1,091,800 at 17% 185,606 194,006
Standard rate 15%*$1,527,800=$229,170
Salaries tax payable
Lower of $194,006 and $229,170 less $6,000 tax waived $188,006
Mr. Chan
Property tax assessment
Year of assessment 2010/11
Basic period: year ended 31 March 2011 $
Rent received ($15,000*12) 180,000
Non-refundable rent ($30,000*12/36) 10,000