Salary tax. Is the principle of territoriality. In other words, only income from or from Hong Kong is taxable. And there are many tax-free items, such as getting married and having children. When paying taxes, the tax allowance can be deducted from the income after deducting expenses. Hong Kong implements an incremental tax rate (that is, an excessive progressive tax rate). The rate of salaries tax varies from year to year. The 500 yuan salaries tax rate for 2003-2004 is as follows: not exceeding HK$ 32, part of the tax rate; Partial tax rate exceeding HK$ 32,500 to HK$ 65,000; Over HK$ 65,000 to HK$ 97, part of the tax rate in 500 yuan; Partial tax rate exceeding HK$ 65,438+03; More than HK$ 97, part of the tax rate in 500 yuan; 65,438+08.5. The deduction items of salaries tax mainly include the holiday travel expenses provided by employers for employees, and the necessary expenses can also be deducted from the approved charitable donations, which refer to the necessary expenses that are not for private or family consumption but are only used to increase income. Living expenses (personal allowance) refers to the living expenses of taxpayers themselves, spouses, children and other dependents. The expense deduction standard is adjusted and published in the annual budget according to the inflation and tax policies. The calculation method of tax payable is the taxable income multiplied by the corresponding tax rate. Salaries tax is levied according to the fiscal year, and a strict two-way declaration system is implemented between employers and employees. Employers do not need to withhold income when paying. Employers must provide information on hiring and dismissing employees, and declare the salary information of employees, and report the salary of employees in the last fiscal year to the tax bureau from April 1 to May 1 every year. Employees must report their salaries to the Inland Revenue Department from May 1 day to June 1 day every year, and fill in the salaries tax return. The tax bureau verifies the audit through computer processing, and issues a notice of collection and tax payment. Taxpayers should pay taxes for this year in advance from July to August of that year, and make final accounts at the end of the year. When paying taxes in advance, it shall be calculated according to the taxable income of the previous year.