Ans 2. Property

Ans 2. Property - BUSI 0018 Hong Kong Taxation Tutorial...

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TA_U2_Property 1 BUSI 0018 – Hong Kong Taxation Tutorial Questions Unit 2 – Property Tax Answer 4 (a) s.5(1), IRO – general charging section - property tax is charged for each year of assessment on every person being the owner of any land or buildings or land and buildings wherever situated in HK - it is computed at the standard rate on the net assessable value of such land or buildings or land and buildings for each year of assessment - special note o *property tax is charged on owners o i.e. income received from sub-letting Æ NOT subject to property tax but assessable under profits tax o *for property tax purpose Æ the party who entitles to receiving the rent will be charged to Property Tax ( DIPN No. 14, para 7 ) (b) Y/A 2007/08: Property tax liability = Nil; because the rental income started in June 2008, i.e. Y/A 2008/09. Y/A 2008/09: Property Tax Liability for Miss Chan $ Rent ($15,000 x 10) 150,000 Premium ($225,000 x 10/24) 93,750 Management fee ($1,900 x 10) 19,000 262,750 Less: 20% statutory deduction 52,550 Net assessable value 210,200 Tax at 15% 31,530 Notes: (a) Rates paid by tenant is neither an assessable value nor an eligible deduction for Miss Chan. (b) Bank mortgage interest is not an eligible deduction for property tax purposes. Y/A 2009/10 $ Rent ($15,000 x 2 + $16,500 x 10) 195,000 Premium ($225,000 x 12/24) 112,500 Management fee ($1,900 x 12) 22,800 330,300 Less: 20% statutory deduction 66,060 Net assessable value 264,240 Tax at 15% 39,636 Notes for Y/A 2008/09 are also applicable.
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TA_U2_Property 2 Answer 5 Property Tax Liability of Mr. Mo Year of Assessment 2007/08 $ Rent: 1.11.2007 - 31.3.2008 ($56,000 x 5)
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Ans 2. Property - BUSI 0018 Hong Kong Taxation Tutorial...

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