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4. Salaries Tax 2

4. Salaries Tax 2 - BUSI0018 HK Taxation Tutorial Notes on...

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BUSI0018 – HK Taxation Tutorial Notes on Salaries Tax (2) – Determining the amount of chargeable income Specific payments that are regarded as income under section 9 – i.e. Taxable income With reference to s9, the following sums, whether derived from employers or from others, are to be included as income from office or from employment s9(1)(a) Wages, salaries, bonuses, leave pay, fees, commissions, gratuities, perquisites or allowance s9(1)(aa) Any amount received by an employee from a pension or provident fund , other than a recognized occupational retirement scheme or MPF scheme 1 implying pension under a recognized occupational retirement scheme upon termination of service, death, incapacity or retirement is exempted income s9(1)(ab) Any amount received by an employee from a recognized occupational retirement scheme other than 1 On termination of service Death Incapacity or Retirement implying payment other than a pension from recognized occupational retirement scheme upon termination of service, death, incapacity or retirement is exempted income s9(1)(b) Rental value 2 租租 of any residence provided rent-free by an employer or an associated corporation s9(1)(c) When a place of residence is provided by an employer or an associated corporation at a rent less than the rental value, the excess of rental value over the rent paid 2 (租租租租租租租租租租, 租租租租租租租租租租租租租租租租租租租) s9(1)(d) Any gain realized by: the exercise of, or the assignment of release of, a right to acquire shares or stock in a corporation if the right was obtained by virtue of the taxpayer’s employment of office in that or any other corporation 3 s9(2A)(a) Any benefits provided by an employer not in connection with a holiday package and 1
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capable of being converted into money by the recipient 4 . s9(2A) (b) Any education benefits paid by an employer for the education of an employee’s child 5 s9(2A)(c) Any amount paid by an employer to an employee in connection with a holiday journey, even where the benefit is not convertible to cash 6 . Note 1 : Payment from recognized retirement scheme DIPN No. 23 summarizes whether certain sums or accrued benefits received from a “recognized occupational retirement scheme” and a mandatory provident fund scheme are exempt or assessable to tax: Recognized occupational retirement scheme Employee’s contribution Employer’s contribution Retirement Not assessable Not assessable Death Not assessable Not assessable Incapacity Not assessable Not assessable Termination of service Not assessable Not assessable (But subject to proportionate benefit rule)
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