This guide highlights the type of incomes that are classified as chargeable and non-chargeable.
Salaries, Wages and Director's fees
Any salary, wages or director’s fees you earn are chargeable to salaries tax, and the gross amounts before the deduction of your contributions to a recognised occupational retirement scheme (ORSO) or mandatory provident fund scheme (MPF) should be reported.
Salaries Tax Paid by Your Employer
The amount, if any, paid by your employer to cover your tax obligations should be reported as assessable income.
Allowances, Perquisites and Fringe Benefits
These forms of income include cash allowances, liability of employees discharged by employers, convertible benefits, education benefits and holiday journey benefits.
Tips from Any Person
If you have received tips from any person because of your employment, you should report them on your tax return.
Value of a Place of Residence
If your employer provides you with a place of residence, you must report it.
Stock Awards and Share Options
All stock awards granted to you and the gains realised by the exercise of, or assignment or release of share options obtained from holding an office or employment.
Back Pay, Gratuities, Deferred Pay and Pay in Arrears
Any income that you have received from your employer as back pay, gratuities, deferred pay and arrears of pay during the course of employment or upon or after cessation of employment are assessable.
Termination Payments and Retirement Benefits
Termination payments (e.g. salary for the last month of service, and payments in lieu of notice accrued on or after 1 April 2012 and payment in lieu of leave) as well as retirement benefits, including accrued benefits received from recognised ORSO or receipt or deemed receipt from MPF.
All pensions should be reported as assessable income.
Severance Payments and Long Service Payments
Employee Compensation Arising from Injury