§ Mr. G. M. Thomsonasked the Secretary of State for the Colonies what are the rates of tax upon earned annual incomes of single persons of £400, £750, £1,500 and £5,000 or their equivalent in Hong Kong.
§ Mr. Iain MacleodThe Hong Kong Inland Revenue Ordinance imposes four separate taxes: Profits Tax, Salaries Tax, Interest Tax, and Property Tax; and it is possible for two single persons, one in business and the other in 99W employment, each earning the same amount of income, to be taxed at different rates. This is due to the fact that the personal allowance and the graduated steps of tax are applicable to Salaries Tax only, although the businessman can obtain the same privilege if he applies to be personally assessed on his total income.
A single man earning £400 a year is below the taxable limit. A businessman earning £750, £1,500 or £5,000 a year is charged Business Profits Tax at the standard rate of 12½ per cent. without reliefs. A single man in employment, or one in business who has applied to be personally assessed on his total income, is taxed as follows:
- on £750 a year he pays £7 16s. 3d.
- on £1,500 a year he pays £59 7s. 6d.
- on £5,000 a year he pays £625.