Hong Kong Ordinances

INLAND REVENUE ORDINANCE - SECT 10

Salaries tax on spouses to be paid separately unless they elect to be jointly assessed

(Past version on 30/06/1997).

(1) In the case of a husband and wife, unless an election is made under
subsection (2), salaries tax shall be payable on the net chargeable  income of
each spouse ascertained under this Part by the spouse to whom the income has
accrued.

(2) Where in any year of assessment a husband and wife, not being a wife
living apart from her husband, both have assessable income and-

   (a)  either the husband or wife is entitled to deductions under Part IVA
        and allowances under Part V which, in aggregate, are in excess of his
        or her net assessable income; or (Amended 31 of 1998 s. 4)

   (b)  both also have a net chargeable income and the aggregate of the
        salaries tax which would be payable by them if subsection (1) applies
        exceeds the salaries tax which would be payable if an election is made
        under this subsection, an election may be made by them, subject to
        section 11, to be assessed to salaries tax in the manner specified in
        subsection (3).

(3) Where an election is made by a husband and wife under subsection (2)
salaries tax shall be payable on their aggregated net  chargeable income as
ascertained under section 12B(2) and in the case of an election-

   (a)  under subsection (2)(a), the spouse who would have been chargeable to
        salaries tax in the absence of such an election;

   (b)  under subsection (2)(b), the spouse who is nominated by them, shall be
        chargeable to salaries tax in respect of such aggregated net 
        chargeable income.

(4) Where a husband or wife is deceased an executor shall have the same right
to make an election under subsection (2) as the deceased would have had if the
deceased had not died.

(5) For the purposes of subsection (3), where an election is made under
subsection (2) by a husband and wife who married one another in the
year of assessment to which the election relates, they shall be deemed, for
the purposes of ascertaining their aggregated net chargeable income for that
year, to have married at the commencement of that year. (Replaced 43 of 1989
s. 3)