State factors which used by ird in determining the source

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Reference no: EM13488403

Mr Orlando is a US citizen and has been working in the Finance Department of Clever Inc. in Los Angeles since 2008. In April 2012, he was relocated to the Hong Kong office as the regional financial controller. In his new role, he has to travel to other Asian countries on a regular basis to review the financial and related matters. The Hong Kong subsidiary of Clever Inc. did not sign a new employment contract with him but did provide him with administative and support services he needed in carrying out his responsibilities. Mr Orlando's salary was deposited into his bank account opened in Hong Kong right after his arrival in Hong Kong. Mr Orlando continues to work closely with his superior in the S on important direction and policy matters.

Assignment File 5

Required:

a State the factors which are used by the IRD in determining the source of employment and discuss whether Mr Orlando's employment should be considered as a Hong Kong employment or not.

b Explain the significance of the source of employment in terms of taxability of employment income under Hong Kong salaries tax.

 

Reference no: EM13488403

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