Salaries Tax Computation
Press here for personal allowances and tax
the year ended 31 March 2012, Mr. Wong, a singleton, was employed as
an accountant with a monthly salary of $50,000. In his tax return,
he claimed deduction for membership fee to Hong Kong Society of
Accountants $2,000, contribution to Mandatory Provident Fund $12,000
and expenses of self-education $15,500. According to his last-year
tax bill, he had paid $40,000 for Provisional Tax for 2005/2006.
2012, Mr. Wong received a tax bill. Assuming the tax return was
totally accepted by the Revenue, his assessment and tax payable
shown in the tax bill would be as follows:
payable for 2011/2012
assessable income: $50,000 * 12 = $600,000 less membership fee
$2,000 less MPF contribution $12,000 less self-education expenses
$15,500 equal to $570,500.
chargeable income: $570,500 minus basic allowance $108,000 equal to
at progressive rates: $66,625
rate restriction: $570,500 * 15% = $85,575 --- not applicable)
Provisional tax paid per last-year tax bill $40,000.
payable: $66,625 minus $40,000 equal to $26,625
Provisional tax payable for 2012/2013, as computed according to the
financial budget, that is $65,585.
payable: $26,625 + $65,585 = $92,210
installments of payments
installment is made up of (a) balance of tax payable for
2011/2012: $26,625 and (b) 75% of the provisional tax payable for
2012/2013, i.e. $65,585 * 75% = $49,189. Total payable for first
installment: $75,814. The due date is usually in January to March
installment of tax is 25% of provisional tax payable for 2012/2013,
i.e. $65,585 * 25% = $16,396. The due date is usually in April to