example%20ch%2002-all

example%20ch%2002-all - 14 edition Example 2-1 A Hong Kong...

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14 edition Example 2-1 A Hong Kong manufacturer has established a factory in China and has recruited local workers to work there. These workers are not chargeable to Hong Kong salaries tax as they are regarded as employed by the branch in China. On the other hand, if a foreign employer set up a branch in Hong Kong and recruited employees in Hong Kong to work for that branch with remuneration payable in Hong Kong, the employees would be treated as having a Hong Kong employment. Example 2-5 Mr Suki, a resident of Japan, has been employed by a Japanese company in Japan as marketing manager for a number of years. His employer has no subsidiaries nor branches in Hong Kong and his salary is credited to his bank account in Japan. He is required to travel overseas to carry out his duties. During the year ended 31 March year 1, the Hong Kong dollar equivalent of his emoluments was $730,000 (note: it is the practice of the IRD to apply the average exchange rate for the year to the foreign currency for calculating the Hong Kong dollar equivalent of a taxpayer's emoluments), and he visited Hong Kong for 100 days during which he rendered services for 55 days. As Mr Suki is employed by a non-resident employer and his salary is paid overseas, his employment is a non-Hong Kong employment. Since he has rendered services in Hong Kong during visits exceeding 60 days during the year ended 31 March year 1, part of his salary income is chargeable to salary tax under s 8(1A)(a). The amount of assessable income for the year of assessment 2009/10 is computed as: $730,000 x 100 days ÷ 365 days = $200,000 Note: Even though Mr Suki only rendered services for 55 days in Hong Kong, he visited
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This note was uploaded on 09/29/2011 for the course ACCT 3161 taught by Professor Kwong during the Spring '11 term at CUHK.

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example%20ch%2002-all - 14 edition Example 2-1 A Hong Kong...

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