HK tax
Salaries Tax Case Study 2021/22 Non-Hk Nancy Williams has been employed by High-tech Ltd (High-tech) in the UK as a project manager since 2013. Her duty is to travel to Hong Kong and the PRC to handle a project and she is required to report her work to her senior in the UK. During the year ended 31 March 2015, Nancy worked for 170 days in Hong Kong, 150 days in the PRC, and 45 days (including 25 days annual leave) in the UK. Additional information for the year ended 31 March 2015 is as follows (all amounts are denominated in Hong Kong dollars): h Annual salary: $1,200,000 expense High-tech paid $90,000 to purchase air tickets for Nancy, her husband and daughter to relocate them from the UK to Hong Kong. X I months (37 Nancy became entitled to a cost of living allowance as from March 2015. The allowance, of $5,000 per month, is payable on the second day of the next month. (4) High-tech gave Nancy an entertainment allowance of $15,000 for the year. She informed the IRD that High-tech required her to socialise with clients. She spent $12,000 entertaining clients but did not keep any receipts or evidence of the entertainment. She kept the balance of $3,000 for herself. (5) Naney-sent her daughter, who was 15, for study in the UK. High-tech reimbursed $50,000 to her for part of the school fee incurred. High-tech also reimbursed the cost of her daughter's air ticket in the amount of $8,000, O Nancy rented a flat in Hong Kong at a monthly rent of $30,000. She also paid a monthly management fee of $2,000. High-tech reimbursed her $28,000 per month upon submission of the rental receipts. rental value High-tech operates a group employee medical scheme. During the year, Nancy paid $6,000 to her family doctors for medical consultation in respect of her family. She received full reimbursement of this amount from the insurance company accommadation benefit (8) On 1 May 2014, Nancy bought a second-hand car for $50,000 from her own funds. High-tech provides Nancy with a corporate credit card, which she used to pay for her private car expenses in the amount of $22,000. The credit card balance was settled by High-tech. benefit max (9) Nancy contributed a total of $18,000 to the Mandatory Provident Fund. (10) Nancy's husband has not worked since she was assigned to Hong Kong. Required: Compute the salaries tax liability of Nancy Williams for the year of assessment 2014/15. Ignore provisional salaries tax and tax rebate or reduction, if any. 21/ Salaries Tax Case Study 2021/22 Non-Hk Nancy Williams has been employed by High-tech Ltd (High-tech) in the UK as a project manager since 2013. Her duty is to travel to Hong Kong and the PRC to handle a project and she is required to report her work to her senior in the UK. During the year ended 31 March 2015, Nancy worked for 170 days in Hong Kong, 150 days in the PRC, and 45 days (including 25 days annual leave) in the UK. Additional information for the year ended 31 March 2015 is as follows (all amounts are denominated in Hong Kong dollars): h Annual salary: $1,200,000 expense High-tech paid $90,000 to purchase air tickets for Nancy, her husband and daughter to relocate them from the UK to Hong Kong. X I months (37 Nancy became entitled to a cost of living allowance as from March 2015. The allowance, of $5,000 per month, is payable on the second day of the next month. (4) High-tech gave Nancy an entertainment allowance of $15,000 for the year. She informed the IRD that High-tech required her to socialise with clients. She spent $12,000 entertaining clients but did not keep any receipts or evidence of the entertainment. She kept the balance of $3,000 for herself. (5) Naney-sent her daughter, who was 15, for study in the UK. High-tech reimbursed $50,000 to her for part of the school fee incurred. High-tech also reimbursed the cost of her daughter's air ticket in the amount of $8,000, O Nancy rented a flat in Hong Kong at a monthly rent of $30,000. She also paid a monthly management fee of $2,000. High-tech reimbursed her $28,000 per month upon submission of the rental receipts. rental value High-tech operates a group employee medical scheme. During the year, Nancy paid $6,000 to her family doctors for medical consultation in respect of her family. She received full reimbursement of this amount from the insurance company accommadation benefit (8) On 1 May 2014, Nancy bought a second-hand car for $50,000 from her own funds. High-tech provides Nancy with a corporate credit card, which she used to pay for her private car expenses in the amount of $22,000. The credit card balance was settled by High-tech. benefit max (9) Nancy contributed a total of $18,000 to the Mandatory Provident Fund. (10) Nancy's husband has not worked since she was assigned to Hong Kong. Required: Compute the salaries tax liability of Nancy Williams for the year of assessment 2014/15. Ignore provisional salaries tax and tax rebate or reduction, if any. 21/
