Hk Tax

Edinburgh Napier University/SCOPE of City U
Hong Kong Taxation

LECTURE 1: Salaries tax and salaries tax planning, Double taxation arrangement with Mainland China

Outline

|Salaries tax |
|- |Scope of charge, format and presentation of salaries tax |
|- |Locality of employment |
|- |Taxability of fringe benefits |
|Salaries tax planning |
|- |Remuneration package and fringe benefits |
|Double taxation relief |
|- |Arrangement between Mainland China and the HKSAR |

Textbook

- Dora Lee, Advanced Taxation in Hong Kong, 15th edition, 2012, Pearson, Hong Kong, Chapters 2 to 5, 23 & 24
LECTURE 1:

Salaries tax

Under s8 of the Inland Revenue Ordinance, salaries tax is charged on every person in respect of his income arising in, or derived from Hong Kong from the following sources: 1) an office 2) employment 3) pension

Source of Income from Office

The source of income from an office is determined by the location of the office, which is at the place where the central management and control of the company is located. Normally, this means the place where directors hold their meetings. Once it is determined that an office is located in Hong Kong, the whole income from such office is chargeable to salaries tax. No