02 Salaries Tax_Answer

02 Salaries Tax_Answer - 2,000(26,000 Net assessable income...

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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 2007/08 $ $ 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
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Unformatted text preview: 2,000 (26,000) Net assessable income 687,400 Less: Approved charitable donation (40,000) 647,400 Less: Married person’s allowance 200,000 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 (450,000) Net chargeable income 197,400 Tax at progressive rates (need to show steps) 23,058 Tax at standard rate (16%) 103,584 Therefore, salaries tax payable $23,058 – ($23, 058 x 75%) 5,764...
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