Hong Kong Tax Deductions: Married Allowance, MPF Contributions & Dual Taxation

在香港税法下Wong works for a Hong Kong company, he is stationed in the UK and comes back to his home in Hong Kong once a month. During the year ended 31 March 2022, he stayed in Hong Kong for 50 days. He paid a UK individual income tax (similar to the Hong Kong Salaries Tax) of HK$550,000 on his income of HK$800,000. He performed services both inside and outside Hong Kong. He received the following remuneration: Salaries: HK$1,150,000 Education allowance for his child: HK$72,000 He contributed $18,000 to satisfy the mandatory requirement of MPF. His wife had no employment income. Mr. Wong’s elder son was 17 years old, financially independent and lived outside. His younger daughter was 15 years old, lived with Mr. Wong and his wife and attended a secondary school in Hong Kong.↳ Question: Which of the following is incorrect? Question 20Answer a. He can deduct married person’s allowance of $264,000 b. None of the other three c. He can claim $18,000 deductions for MPF contribution d. $800,000 of his income paid UK tax is non-taxable

The information provided pertains to personal income tax matters and does not directly involve financial accounting principles or corporate transactions. However, I can provide some guidance based on the given details:

a. The deduction for married person's allowance would depend on the specific tax laws in Hong Kong. If Mr. Wong is married and his wife had no employment income, he might be eligible for this allowance, but the exact amount should be verified against the current tax regulations in Hong Kong.

b. This option suggests that none of the other options are incorrect, which we will evaluate below.

c. In general, contributions to the Mandatory Provident Fund (MPF) are deductible from taxable income in Hong Kong. Therefore, Mr. Wong can likely claim a deduction of $18,000 for his MPF contribution.

d. Income paid UK tax is typically subject to the tax laws of both the UK and Hong Kong, depending on their respective tax treaties and the concept of double taxation avoidance. Whether the $800,000 of his income is non-taxable in Hong Kong after being taxed in the UK would depend on the tax treaty between the two countries and the specific circumstances.

Based on the information, it seems that option d could be incorrect without further information about the tax treaty and applicable tax laws. However, it's important to note that these are personal tax matters and not related to financial accounting principles, which is the focus of my expertise. For accurate advice, Mr. Wong should consult a tax professional familiar with Hong Kong and UK tax laws.

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