John and his wife, Maggie, have lived in Hong Kong for over 30 years. John runs a sole proprietorship business in Hong Kong. For the year of assessment 2019/20, the taxable profits of the business were $300,000. John also runs a partnership with his friend, Roy, in Hong Kong. John shares $50,000 tax loss of the partnership incurred for 2019/20 (i.e., 50% of the total tax loss of $100,000 incurred for 2019/20). John has been acting as a director of Orange Ltd, a Hong Kong incorporated company managed in Hong Kong, for the last five years. However, John never attended any meetings of Orange Ltd during 2019/20. On 1 May 2020, John received a notice from Orange Ltd advising him that his director’s fee of $200,000 for 2019/20 had been declared and approved in the board of directors’ meeting on 20 March 2020. John acquired an apartment in Tuen Mun in April 2019. John signed a three-year lease with a tenant starting on 1 April 2019, at a monthly rental of $9,000. All the rates and management fees are payable by the tenant. The apartment was financed partly by a loan borrowed from a bank. John paid interest of $8,000 per month to the bank. Maggie is a part-time auditor with an annual salary of $150,000. For the year of assessment 2019/20, she made a cash donation of $40,000 to World Vision (an approved charity). John and Maggie elected jointly for personal assessment for the year of assessment 2019/20. They currently live in a leased property in Central with a monthly rental payment of $35,000. Their two children, aged 15 and 22, are studying full-time in Australia. During the year, John paid $4,000 per month to his mother for her maintenance. His mother is 70 and is living in Hong Kong alone. Required: Compute the tax payable by John and Maggie under joint personal assessment for the year of asses
John and his wife, Maggie, have lived in Hong Kong for over 30 years. John runs a sole proprietorship business in Hong Kong. For the year of assessment 2019/20, the taxable profits of the business were $300,000.
John also runs a
John has been acting as a director of Orange Ltd, a Hong Kong incorporated company managed in Hong Kong, for the last five years. However, John never attended any meetings of Orange Ltd during 2019/20. On 1 May 2020, John received a notice from Orange Ltd advising him that his director’s fee of $200,000 for 2019/20 had been declared and approved in the board of directors’ meeting on 20 March 2020.
John acquired an apartment in Tuen Mun in April 2019. John signed a three-year lease with a tenant starting on 1 April 2019, at a monthly rental of $9,000. All the rates and management fees are payable by the tenant. The apartment was financed partly by a loan borrowed from a bank. John paid interest of $8,000 per month to the bank.
Maggie is a part-time auditor with an annual salary of $150,000. For the year of assessment 2019/20, she made a cash donation of $40,000 to World Vision (an approved charity).
John and Maggie elected jointly for personal assessment for the year of assessment 2019/20. They currently live in a leased property in Central with a monthly rental payment of $35,000. Their two children, aged 15 and 22, are studying full-time in Australia. During the year, John paid $4,000 per month to his mother for her maintenance. His mother is 70 and is living in Hong Kong alone.
Required: Compute the tax payable by John and Maggie under joint personal assessment for the year of assessment 2019/20. Input numbers only, no commas or other symbols. Input 0 for items that should not be included in the computation.
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