4b

Any Hong Kong Tax? As a good friend of yours, Mr So is asking for your advice on his own tax as well as whether he or his company (Super S Limited) will be subject to Hong Kong Profits Tax in the year of assessment 2019/20. I Required: Answer the followings: (1) Mr So received salaries from Super S Limited in the year of assessment 2019/20. Advise him whether he will be subject to Hong Kong Salaries Tax. (30 marks) (2) Research into and provide a summary of Departmental Interpretation and Practice Notes No. 39 (Revised) - Profits Tax: Digital Economy, Electronic Commerce and Digital Assets from Paragraphs 8 to 26 only (i.e. Charge of Profits Tax, Carrying On Business In Hong Kong, Locality of Profits and Permanent Establishments). (25 marks) (3) Based on (2) above, advise Mr So whether Super S Limited may be subject to Hong Kong Profits Tax in the year of assessment 2019/20. (15 marks) (4) Mr So is also considering the purchase of a 300-sq feet residential apartment in Tsing Yi, Hong Kong and rent it out. His real estate agent told him that it is very common for landlord to charge the tenant an all-inclusive monthly rent (rent plus management fees plus rates and Government rent). At the same time, Mr So is thinking whether he should buy the property in his own name or in a HK company's name (he has not set that up yet). Advise Mr So: (a) Whether he should buy the property in his own name/his new HK company's name given that there may be tax advantages; AND (b) What arrangement can Mr So propose with his tenant with respect to the all-inclusive monthly rent in order to minimize his Hong Kong Property Tax liabilities. (30 marks) Any Hong Kong Tax? As a good friend of yours, Mr So is asking for your advice on his own tax as well as whether he or his company (Super S Limited) will be subject to Hong Kong Profits Tax in the year of assessment 2019/20. I Required: Answer the followings: (1) Mr So received salaries from Super S Limited in the year of assessment 2019/20. Advise him whether he will be subject to Hong Kong Salaries Tax. (30 marks) (2) Research into and provide a summary of Departmental Interpretation and Practice Notes No. 39 (Revised) - Profits Tax: Digital Economy, Electronic Commerce and Digital Assets from Paragraphs 8 to 26 only (i.e. Charge of Profits Tax, Carrying On Business In Hong Kong, Locality of Profits and Permanent Establishments). (25 marks) (3) Based on (2) above, advise Mr So whether Super S Limited may be subject to Hong Kong Profits Tax in the year of assessment 2019/20. (15 marks) (4) Mr So is also considering the purchase of a 300-sq feet residential apartment in Tsing Yi, Hong Kong and rent it out. His real estate agent told him that it is very common for landlord to charge the tenant an all-inclusive monthly rent (rent plus management fees plus rates and Government rent). At the same time, Mr So is thinking whether he should buy the property in his own name or in a HK company's name (he has not set that up yet). Advise Mr So: (a) Whether he should buy the property in his own name/his new HK company's name given that there may be tax advantages; AND (b) What arrangement can Mr So propose with his tenant with respect to the all-inclusive monthly rent in order to minimize his Hong Kong Property Tax liabilities. (30 marks)