HK Salaries Tax

My leagalese isn't so good, so could someone explain the following Inland Revenue Ordinance - in particular part 1A(b) after the links.


Government's Inland Revenue Ordinance online:-


Cap 112 - Inland Revenue Ordinance

http://www.legislation.gov.hk/blis_ind.nsf/d2769881999f47b3482564840019d2f9?OpenView&Start=88&Count=30&Expand=112.1#112.1


The Salaries Tax section below reads as follows:-


Cap 112 s 80 - Charge of Salaries Tax

http://www.legislation.gov.hk/blis_ind.nsf/d2769881999f47b3482564840019d2f9/0315e0c7bfe0a406c82564800040ffa2?OpenDocument


[....


(1) Salaries tax shall, subject to the provisions of this Ordinance, be

charged for each year of assessment on every person in respect of his

income arising in or derived from Hong Kong from the following sources-

(a) any office or employment of profit; and

(b) any pension.


(1A) For the purposes of this Part, income arising in or derived from Hong Kong from any employment-

(a) includes, without in any way limiting the

meaning of the expression and subject to

paragraph (b), all income derived from

services rendered in Hong Kong including

leave pay attributable to such services;

(Amended 69 of 1987 s. 2)

(b) excludes income derived from services

rendered by a person who-

(i) is not employed by the Government or

as master or member of the crew of a

ship or as commander or member of the

crew of an aircraft;



.....]

It's alot to explain. If could say what particular aspect is of concern to your specific situation then it might give somewhere to start and focus on.

the bit that says:


For the purpose of this Part, "income arising in or derived from Hong Kong" from any employment-...

EXCLUDES income derived from services rendered by "a person who-....IS NOT employed by the Government, or on a ship".





Seems a bit unfair on government employees and sailors don't you think?

You failed to cut and paste the crucial word "AND" followed by part (ii) which is self-explanatory.



(i) is not employed by the Government or as master or member of the crew of a ship or as commander or member of the crew of an aircraft; and

(ii) renders outside Hong Kong all the services in connection with his employment;

I seee, thanks.

and you also need to read 1B imposing a 60 day HK visit rule and read http://www.ird.gov.hk/eng/tax/ind_exemp.htm


or call Asia Business Secretarial 2838 8887 who deal with the Inland Revenue in Hong Kong every day on this class of tax exemption claims