International Assignment Services
Feb 2013 By
The Board of Review ("BoR")’s decision in Case No. D11/12 handed down in June 2012 was recently published. The case primarily concerns whether certain sums ("the Sums") received by a solicitor from a global law firm are in the nature of salaries income (which will be subject to salaries tax if with a Hong Kong source) or dividend payments (which is outside the scope of salaries tax). The Board dismissed the taxpayer’s appeal and ruled that the Sums are Hong Kong sourced employment income subject to salaries tax.
This news alert summarises the background of the case, discusses the Board’s decision and highlights the implications of the case to individual taxpayers working for a professional firm.