Unit_2_Property_Tax

88 clubsandassociationsifnotexemptedfrom

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Unformatted text preview: the flat on 1 July 2009. The flat remained vacant until 1 April 2010. Required Calculate the property tax payable for the years of assessment 2007/08, 2008/09 and 2009/10. Unit 2 – Property Tax Unit Answers to Sample Question Ms Chan Property Tax Computation Year of assessment 2007/08 2008/09 2009/10 $ $ $ Premium 135,000 180,000 45,000 Rent 90,000 120,000 30,000 225,000 300,000 75,000 Less Irrecoverable Rent 0 0 (70,000) Rates paid by Owner (4,500) (6,000) (1,500) Assessable value 220,500 294,000 3,500 Less: Statutory deduction 20% (44,100) (58,800) (700) Net Assessable value 176,400 235,200 2,800 Property tax rates in % 16 15 15 Property tax payable 28,224 35,280 420 Less: 75% waived [limited to] (21,168) 0 0 Net tax payable 7,056 35,280 420 Unit 2 – Property Tax Unit Organizations exempted from Property Tax liability Government – Housing Authority Quasi government body – Housing Society Foreign consuls – under immunity Approved Charitable institutions – s.88 Clubs and associations – if not exempted from Profits Tax under s. 24, rental income is assessed under Profits Tax (if exempted...
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