SelfTestQ_SalariesTaxComputation_ans

SelfTestQ_SalariesTaxComputation_ans - 24,000 Subscription...

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BUSI 0018 – Hong Kong Taxation Self Test Question – Salaries Tax Computation (Answers) Salaries Tax Liability for Mr. Lau Year of Assessment 2004/05 $ $ Salary (40,000 x 12) 480,000 New Year bonus 50,000 Holiday allowance 10,000 Rental value (480,000 + 50,000 + 10,000 - 26,000) x 10% 51,400 Less: Rent suffered 12,000 39,400 Shares option gains - on assignment (15,000 - 400) 14,600 - on exercise [(20 - 5) x 6,000] - 600 89,400 104,000 Assessable income 683,400 Less: Motor car expenses
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Unformatted text preview: 24,000 Subscription 2,000 (26,000) Net assessable income 657,400 Less: Approved charitable donation (50,000) 607,400 Less: Married person’s allowance 200,000 Child allowance (30,000 x 2) 60,000 Dependent parent allowance (30,000 x 2) 60,000 Dependent sister allowance 30,000 Disabled dependent allowance 60,000 (410,000) Net chargeable income 197,400 Tax at progressive rates (need to show steps) 28,680 Tax at standard rate (16%) 97,184 Therefore, salaries tax payable 28,680...
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This note was uploaded on 02/23/2012 for the course BUSI 0018 taught by Professor C.ng during the Spring '11 term at HKU.

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