powerpoint%20Chapter%2019%20-%20Personel%20assessment

powerpoint%20Chapter%2019%20-%20Personel%20assessment -...

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Unformatted text preview: (year 11/12) 14 th edition 1 Chapter 19 Personal Assessment Key points 1. Election for personal assessment 2. Computation of tax payable under PA (year 11/12) 14 th edition 2 Personal Assessment • Is not a new tax • An individual can elect PA • Similar to joint assessment of salaries tax (chapter 5) • In PA, all the incomes (employment, business and property) are aggregated and personal allowances are deducted. Tax is then computed at the progressive tax rates , but subject to the standard rate on the reduced total income (year 11/12) 14 th edition 3 Advantage of electing PA - $ 1. Obtain personal allowances for individual liable to property tax 2. Obtain donations relief for individual liable to property tax 3. Made use of trading loss immediately 4. Deduct mortgage interest expense for rental income. (year 11/12) 14 th edition 4 Who May Elect • Individual 18 or above , or if under 18, both his parents are dead • Permanent / temporary resident of HK. A married individual can elect PA if his/her spouse is permanent/temporary resident • Married person (apply by both husband and wife) --- but --- if only one spouse has chargeable income in that year, he may elect PA alone, and MPA shall be granted (year 11/12) 14 th edition 5 Decreased person / partner • For decreased person – executor has the right to elect PA • For decreased partner – the executor may claim to include such share of profit in that year (year 11/12) 14...
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This note was uploaded on 02/04/2012 for the course ACCT 3161 taught by Professor Kwong during the Spring '11 term at CUHK.

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powerpoint%20Chapter%2019%20-%20Personel%20assessment -...

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