example%20ch%2003-all

example%20ch%2003-all - 14 edition Example 3-1 The basis...

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14 edition Example 3-1 The basis periods of the years of assessment 2008/09 and 2009/10 are 1 April 2008 to 31 March 2009 and 1 April 2009 to 31 March 2010 respectively. If a person has several employments and/or offices during a year of assessment, one single assessment will be issued on him for that year of assessment, charging tax on the aggregate assessable income from all his employments and offices. Example3-2 Mr Chan had full-time employment as well as part-time employment during the year ended 31 March year 1. Mr Chan's income earned from both employments from 1 April year 1 to 31 March year 1 is chargeable to salaries tax for the year of assessment year 0. Example 3-3 Mr Cheung retired from LM Ltd on 31 March year 1. On 5 April year 2, Mr Cheung received a bonus of $12,000 in respect of LM Ltd’s financial result for the year ended 31 December year 1. The bonus was deemed to accrue to Mr Cheung on 31 March year 1, the last day of his employment. Example 3-4 Mr Wong completed his four-year contract of employment with X Ltd on 31 December 2009. X Ltd paid Wong a gratuity of $150,000, representing 15 per cent of his total basic salary for the contract period, on 1 January year 1. As the gratuity was a lump-sum, Mr Wong can claim spreading back of the gratuity on or before 31 March year 3 (ie two years after the year of assessment year 1, which is the year of payment of the gratuity). Example 3-5 In the above illustration, the gratuity for services rendered for four years can be spread back for a maximum period of three years/ 36 months . The amounts of gratuity related back to the years of assessment concerned are calculated as follows:
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example%20ch%2003-all - 14 edition Example 3-1 The basis...

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