HONG KONG BAPTIST UNIVERSITY
DEPARTMENT OF ACCOUNTANCY AND LAW
HONG KONG TAXATION
Dr. Daniel Ho (Room: WLB 714; Tel: 3411 7539; email: firstname.lastname@example.org)
This subject aims to introduce students the principles and administration of the income tax
system of Hong Kong. This subject discusses the general principles of taxation, property tax,
salaries tax, profits tax, depreciation allowance, and personal assessment. It also provides
students with basic of stamp duty.
1. Lee, Hong Kong Taxation, Latest Edition, Hong Kong Association of Accounting
2. Smith and Macpherson, Hong Kong Taxation: Law & Practice, Latest Edition, The
Chinese University of Hong Kong Press.
3. Lee and Ho, Advanced Taxation in Hong Kong, Latest Edition, Longman.
Class Participation and Discussion 20%
Teaching and Learning Method
There is a three-hour meeting per week. Students are required to attend all meetings and are
expected to read the assigned readings. Topics will be covered through a combination of
teaching and learning modes including lectures, problem discussions and presentations.
Week Tentative Topic Readings
1 Overview and Essential:
Property Tax Overview:
L: Ch. 1-2
L: Ch. 3-5 (brief reading)
L: Ch. 6
S&M: Ch. 1; L&H: Ch. 1
S&M: Ch. 7-9 (brief reading); L&H: Ch. 7-8 (brief
DIPN 6 (brief reading)
S&M: Ch. 2; L&H: Ch. 6
2 Salaries Tax I Essential:
L: Ch. 7-8
DIPN 10, 16, 41
S&M: Ch. 3.1-3.4; L&H: Ch. 2-3
3 Salaries Tax II Same as above
4 Salaries Tax III Essential:
L: Ch. 9-10
DIPN 9, 35, 36, 37
S&M: Ch. 3.5–3.8 (excludes 3.8.1), 6.6; L&H: Ch. 4-5
DIPN 38 (brief reading)
5 Salaries Tax IV Same as above
6 Profits Tax I Essential:
L: Ch. 11-12
S&M: Ch.4.1–4.4; L&H: Ch. 9-10 [Ch. 10, para. 65-
77 (brief reading): cases on source of profits]
7 Profits Tax II Essential:
L: Ch. 13
DIPN 4, 13, 17, 22, 34
S&M: Ch. 4.5.1-4.5.4; L&H: Ch. 11 [Ch. 11, para. 57-
70 (brief reading): stock borrowing and lending].
DIPN 42 (brief reading)
8 Profits Tax III Essential:
L: Ch. 13
DIPN 3, 5, 12, 28, 40
S&M: Ch. 4.5.5-4.5.10; L&H: Ch. 12
DIPN 13A (brief reading)
9 Profits Tax IV Essential:
L: Ch. 14
S&M: Ch. 4.5.12-4.5.16, 4.6; L&H: Ch. 13-14 [Ch.
13, para. 10-24 and para. 25-31 (brief reading): trading
stock and Sharkey v Wernher].
DIPN 1 (brief reading)
10 Partnership and Essential:
Personal Assessment L: Ch. 15, 18
S&M: Ch. 4.7.9, 6; L&H: Ch. 15,19
11 Depreciation Essential:
Allowance – Plant & L: Ch. 16
Machinery DIPN 7
S&M: Ch. 5.6-5.9, 5.11; L&H: Ch. 17
12 Depreciation Essential:
Allowance – L: Ch. 17
S&M: Ch. 5.1-5.5; L&H: Ch. 18
DIPN 2 (brief reading)
13 Stamp Duty and S&M: Ch. 11 (brief reading)
Final Review L&H: Ch. 20 (brief reading)
L refers to Lee book.
S&M refers to Smith and Macpherson book.
L&H refers to Lee and Ho book.
DIPN refers to Inland Revenue Department’s Departmental Interpretation & Practice
Notes [Available in IRD’s website]