Calculate the Hong Kong salaries tax payable by Peter for the year of assessment 2019/20. (Note: you should ignore provisional taxes.) Input numbers only, no commas or other symbols. Input 0 for items that should not be included in the computation.
Peter is an accountant of Pucci (HK) Ltd (Pucci), a company managed and controlled in Hong Kong. The following information is available in respect of Peter for the year ended 31 March 2020:
(1) Peter’s basic salary is $50,000 per month.
(2) Pucci gave Peter a meal allowance of $20,000 to cover his entertainment expenses. He actually spent $15,000 and kept the balance.
(3) On 1 May 2019, Peter was given an option to purchase 10,000 shares in Pucci (HK) Ltd at $8 per share. He exercised the option on 30 September 2019. The market price on 1 May 2019 and 30 September 2019 was $18 and $20 per share, respectively. He sold all the shares on 31 December 2019 when the share price reached $25 per share.
(4) From 1 April 2018 to 30 September 2019, he was provided with a house owned by Pucci in Hong Kong, rent-free. From 1 October 2019, he lived in an apartment in Hong Kong which was purchased by him in August 2019.
(5) Peter is studying on the Master of Accountancy programme at Lingnan University. He paid $100,000 for the tuition fee during the year, and Pucci reimbursed $50,000 to him.
(6) Peter paid $18,000 as his mandatory contribution to the Mandatory Provident Fund during the year.
(7) Peter’s wife is a Mainland China resident working in a Shanghai company. Her annual salary is $100,000 and is not subject to tax in Hong Kong.
(8) Peter is living with his two children, aged 17 and 26.
(9) Peter maintains his mother, aged 70, who is living in Shanghai. His mother travels frequently to Hong Kong to visit Peter.
Required: Calculate the Hong Kong salaries tax payable by Peter for the year of assessment 2019/20. (Note: you should ignore provisional taxes.) Input numbers only, no commas or other symbols. Input 0 for items that should not be included in the computation.
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