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tax cases (persuasive only)
tax Board of Review cases (
8 Others Inland Revenue Departmental Interpretation
and Practice Notes (DIPN) (
- No binding force and the taxpayers can still
have the right to object & appeal against an
assessment affected by any of the DIPN.
assessment - Up to 7/2012, there are in total 49 DIPN. 9 Merits of Hong Kong taxation system
7. simple and easy to administer
generate sufficient recurrent revenue
adapt to changing commercial practices
combat tax avoidance and evasion
equitable between different classes of taxpayers
capable to achieve non-fiscal objectives when
10 Common features of the Hong Kong
taxation system - 1
1. Schedular tax system (see slide no. 13) and
no total income concept (exception personal assessment by election) 2. Territorial (
) source concept and no
residence concept (exception- special
provisions) 3. Direct assessment from taxpayer concerned 4. Low tax rate, limited to standard11
rate Common features of the Hong
Kong taxation system - 2
5. No tax on dividend income
6. No capital gains tax (
7. Husband and wife treated as two independent
persons (exception - joint assessment)
persons 8. Very few withholding taxes ( 9. Very few anti-avoidance tax legislations 10. Provisional tax assessment system (
Provisional ) )
12 The Schedular Tax System No total income concept Tax is imposed separately for different
class of income under 3 headings: Property tax Salaries tax Profits tax
13 Before 1989/90, there were 4
headings i.e. property tax, salaries
tax, profits tax and interest tax.
tax, Exception: personal assessment (
) i.e. aggregate the
income from different sources;
subject to qualifications for election.
14 Brief intro. to Inland Revenue Ordinance Historical origin of the Inland Revenue Ordina...
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This document was uploaded on 03/16/2014.
- Spring '14