[Ans: Individuals are charged to salaries tax on any Hong Kong sourced income which has been obtained from an office, employment or pension. In certain circumstances, no tax will be levied on remuneration for service performed outside Hong Kong.
[Ans: Hong Kong Salaries Tax payable is calculated at progressive rates on the net chargeable income or at a standard rate on the net income, whichever is lower. For the purpose of Hong Kong Salaries Tax payable, net chargeable income equals total income minus deductions and allowances. Whereas, net income equals total income minus deductions.]
[Ans: Place of residence provided (or housing benefits) provided by an employer to an employee are generally subject to Hong Kong salaries tax unless an offshore/exemption claim on their employment income is allowed by the Hong Kong Inland Revenue Department. Please note that in case where employees are provided with rent-free or rent-subsidised residence, the taxable housing allowance will be calculated on a deemed basis (i.e. at a certain percent of your taxable employment income). In comparison, if housing benefits are provided in the form of cash allowance, the full amount of such cash allowance will be taxable.]
[Ans: A basic allowance is deductible from a taxpayer’s net assessable income provided he or she has not been granted a married person’s allowance, and that his or her spouse has not claimed a married person’s allowance.]
[Ans: A married person’s allowance is deductible from a taxpayer’s net assessable income if the taxpayer is married and either:
– his or her spouse did not have assessable income in the year of assessment;
– joint assessment to salaries tax has been elected by the couple; or
– has elected to be assessed by personal assessment.]
[Ans: Child allowance is available when a taxpayer had living and was maintaining an unmarried child who was (a) under 18 years of age; (b) between 18 and 25 years of age and receiving full-time education; or (c) 18 years of age or older and, due to physical or mental disability, incapacitated for work.]
[Ans: Home loan interest that a taxpayer pays for the acquisition of a dwelling situated in Hong Kong and any car parking space located in the same development of the dwelling can be deducted from their assessable income under salaries tax or from their total income under personal assessment. The maximum deductible limit is HK$100,000.]
[Ans: Taxpayers can claim deduction for a donation made to any charity that is exempted under the Hong Kong tax law, or to the Government for charitable purposes. The maximum amount of approved charitable donation allowed is 35% of the taxpayer’s income after allowable expenses and depreciation allowances or assessable profits.]
[Ans: Under the Hong Kong tax law, mandatory contributions to MPF schemes are deductible in computing taxpayers’ assessable income subject to the maximum amount of HK$18,000 for the year of assessment 2015-16 and onwards.]
[Ans: Tax Deductible Voluntary Contributions (TVC) has been passed to provide tax incentives for scheme members to make TVC starting from 1 April 2019 to encourage the public to save early for retirement financial planning purpose. Tax deduction on voluntary contribution will be effective from the year of assessment 2019/20 and the maximum tax-deductible limit is HK$60,000 each year per taxpayer. In order to benefit from tax deductions, taxpayers must put the TVC in a TVC account. Any voluntary contributions made to existing contribution account are not TVC and such contributions are not tax deductible.]
[Ans: The main tax claims in Hong Kong are application for full or partial exemption of income or claim for tax credit under salaries tax.]
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