Ans Self-Test Salaries Tax Computation

Ans Self-Test Salaries Tax Computation - (40,000) 647,400...

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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 2009/10 $ $ 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 (45,000 - 400) 44,600 - on exercise [(20 - 5) x 6,000] - 600 89,400 134,000 Assessable income 713,400 Less: Motor car expenses 24,000 Subscription 2,000 (26,000) Net assessable income 687,400 Less: Approved charitable donation
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Unformatted text preview: (40,000) 647,400 Less: Married person’s allowance 216,000 Child allowance (50,000 x 2) 100,000 Dependent parent allowance (30,000 x 2) 60,000 Dependent sister allowance 30,000 Disabled dependent allowance 60,000 (466,000) Net chargeable income 181,400 Tax at progressive rates (need to show steps) 18,838 Tax at standard rate (15%) 97,110 Tax at lower of progressive rates or standard rate 18,838 Tax relief: $18,838 x 75% = $14,128 or $6,000, whichever is the less Therefore, tax relief = $6,000 Salaries tax payable: $18,838 – $6,000 12,838...
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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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