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Written by: Guo Xiaoqing, Lin Zhitong
2020-06-04 10:46
Last update date: 2020-06-04 10:48The Inland Revenue Department issued a "green envelope" tax return to all migrant workers on June 1. According to the latest annual report of the Inland Revenue Department, the total tax revenue of government salaries in 2017/18 exceeded RMB 60.4 billion. Of the 1.87 million taxpayers in Hong Kong, 3,011 “employees working” with an annual salary of over RMB 10 million accounted for 0.16% of total taxpayers It earned 68.47 billion yuan and an average annual salary of 222.741 million yuan. However, the higher the income, the more taxes are paid. The working emperors paid a total of more than 10 billion yuan in taxes, and the per capita tax was 3.34 million yuan, accounting for 16.68% of Hong Kong.
According to the 2018/19 Annual Report of the Taxation Bureau, salaries tax revenue mainly comes from 170,000 taxpayers, who account for 9.3% of all taxpayers, contribute more than 78% of the total tax, and involve 47.4 billion yuan. In addition to the working emperor with an income of 10 million yuan, 90,000 high-income families with an annual salary of 1 million to 1.5 million yuan also contributed 15.5% of the tax, and the per capita tax was 104,000 yuan.
From 2017 to 2018, there were about 1.87 million taxpayers, of which the number of taxpayers with income of 300,000 to 400,000 yuan was the largest, with a total of 300,000, accounting for 16.4% of the total number. This is followed by income groups of 400,000 to 500,000 and 500,000 to 600,000 yuan, with the lowest number of income groups being 7.5 million or more.
Average tax drops
Taxpayers' average tax is directly proportional to their income. Taxpayers in the lowest income group only need to pay 21 yuan on average, while those in the highest income group have to pay about 3.35 million yuan. Compared with the previous year, the two groups have to pay RMB 20 and RMB 3.02 million respectively. As the total tax refund in 17/18 was higher than in previous years, the average tax was reduced.
People with an annual salary of 800,000 to 900,000 have the highest percentage of donations
On the other hand, the annual report points out that the taxpayer’s donation is directly proportional to the income level. The annual tax exemption for people with a salary of 10 million yuan due to charity donations is about 640 million yuan, with an average of 210,000 yuan per person, followed by income of 7.5 million to For 10 million taxpayers, the average person donates about 50,000 yuan. However, based on the ratio of the declared amount to the total income, taxpayers with annual salaries of 800,000 to 900,000 donated the highest total income, followed by 900,000 to 1 million.
The total taxation for the year was 341.4 billion yuan, an increase of 12.8 billion yuan or 3.9% from 2017/18. According to statistics from the Taxation Bureau, 60.1 billion yuan came from salaries tax, a decrease of 700 million or 1.1% from the previous year; and the number of tax assessments increased by 5.3% from the previous year, but due to the 2018-19 budget relief measures, Salaries tax has been reduced by 75%, reducing its assessment by 0.8%.
Tax return
