0120 B415F Salaries tax

0120 B415F Salaries tax - c e 11 B415F Salaries tax 2 22...

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Unformatted text preview: c e 11 B415F Salaries tax 2 22 Contents 1. S9A: Service Companies 2. Recognised Retirement Scheme 3. Seafarers & aircrews 1. S9A Service Company { D 9 E 0 F A 4 -2 4 7-4 2 6 E -A 6 4 D -7 5 B 6 3 5 8 C E 4 2 } Mr. Smith { 1 6 E 0 3 4 A -B 0 6 3 -4 8 E -8 F 0 5 -D A D A 9 1 8 4 B F 3 5 } The Firm { 1 4 0 D F 5 B A -4 9 A B -4 E 8 A -A 7 3-1 A D D 1 C A 3 7 F E 8 } Legal Services Limited te Legal Firm { 0 2 F D 1 6 2 -D 4 9 B -4 6 C 7 -B 1 8 C -6 8 6 7 3 9 8 9 C 4 A } Senior Salary partner ces Company 33 S9A Service Company n Mr. Smith was solicitor and engaged by a private legal firm (“the firm”) in Hong Kong as a Senior Salary Partner. n The appointment of Mr. Smith by the firm was through Legal Services Limited, of which Mr. Smith was the major shareholder and director. 44 S9A Service Company n By Contract B entered into between Legal Services Limited and the firm, Legal Services Limited agreed to assign Mr. Smith to work at the Firm. n According to Contract B, Legal Services Limited was entitled to a monthly remuneration of $150,000 and an annual bonus. 55 S9A Service Company n The Firm made the payment by auto-pay to the bank account of Legal Services Limited monthly. Mr. Smith was entitled to annual vacation leave of 30 days in accordance with Contract B. n By Employment Contract C, Mr. Smith was employed by Legal Services Limited to provide consultation services to the 66 S9A Service Company n Mr. Smith was entitled to monthly remuneration of $60,000 according to the Employment Contract. n What will be the tax benefit without S9A 77 S9A Service Company n Such arrangement is to make use of the less restrictive provision on the deduction of expenses under profits tax. n Be treated taxed under Salaries Tax ¨ Where remuneration for services under employment-like conditions is not paid to the person, but to a company he controls 88 99 SERVICE COMPANIES deal with tax avoidance aspects of "service company" arrangements. Two types of arrangements Type I service companies are companies which the IRD considers are used to disguise an employer-employee relationship. Type II service companies are companies (or trusts) controlled by the proprietor or partners of a business to which management fees are paid by the business....
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This note was uploaded on 03/11/2010 for the course BBA B415 taught by Professor Mrli during the Spring '10 term at Academy of Art University.

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0120 B415F Salaries tax - c e 11 B415F Salaries tax 2 22...

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