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Unformatted text preview: le and easy to administer generate sufficient recurrent revenue neutral adapt to changing commercial practices combat tax avoidance and evasion equitable between different classes of taxpayers capable to achieve non-fiscal objectives when capable necessary necessary
11 11 Common features of the Hong Kong Common taxation system - 1 taxation Schedular tax system (see slide no. 14) and Schedular no total income concept (exception - personal assessment by election) assessment Territorial ( ) source concept and no Territorial residence concept (exception- special provisions) provisions) Direct assessment Direct Low tax rate, limited to standard rate
12 12 Common features of the Hong Common Kong taxation system - 2 Kong No tax on dividend income No No capital gains tax ( No ) Husband and wife treated as two independent Husband persons (exception - joint assessment) persons No withholding tax (exception - nonresidents) Provisional tax assessment system ( Provisional )
13 13 The Schedular Tax System No total income concept Tax is imposed separately for different Tax class of income under 3 headings: class Property tax Salaries tax Profits tax
14 14 Before 1989/90, there were 4 Before headings i.e. property tax, salaries tax, profits tax and interest tax. tax, Exception: personal assessment ( Exception: ) i.e. aggregate the income from different sources; subject to qualifications for election. qualifications
15 15 Basic Law ( Basic ) Under the principle of “one country, two Under systems”, the Sot system and policies will not be practised in Hong Kong. will Article 2 “the authorization of the HKSAR Article to exercise a high degree of autonomy and to enjoy executive, legislative and independent judicial power, including the right of final adjudication.” right
16 16 Article 8 “laws previously in force in Article HK, i.e., the common law, rules of equity, ordinances, subordinate legislation and customary law shall be maintained, except for any that contravene this Law, and subject to any amendment by the legislature of the HKSAR.” HKSAR.”
17 17 Article 18 “laws in force...
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- Spring '09
- Financial Accounting